Flood Insurance Not Enough Coverage for Hurricane Sandy

20 Mar

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Hurricane Sandy has left a devastating toll on millions of property owners and possibly thousands of little and medium sized companies. Conservative estimates have calculated insured losses to exceed $30 billion with many getting to wait weeks or even months ahead of they will get compensation or reimbursement for their loss of home, equipment and or damage to other forms of assets. For those businesses particularly in the coastal regions and near huge bodies of water who had been intelligent adequate to purchase flood insurance, they are in a significantly greater financial and mental position than those who elected to decline this coverage.

However, buying flood insurance will only cover the expense of repairing or replacing damaged creating(s), house, equipment and stock. But what if a company is in an area exactly where mass destruction and flooding will take weeks or even months to clear up. How will these firms survive with no income and expenses that nevertheless have to be paid?

A all-natural catastrophic occasion is a perfect example as to why Company Interruption Insurance need to be purchased. This type of coverage can typically be added onto a enterprise insurance policy otherwise recognized as a CGL-Industrial Common Insurance for a comparatively tiny price varying amongst 5-10% of the annual premium. Enterprise Interruption insurance gives coverage when an insurable loss forces a enterprise to shut down their operations. It will compensate the enterprise owner for the loss of net profits and will cover ALL required expenditures till the organization is prepared to open yet again. The quantity of coverage depends on the limits selected by the insured. For example, a takeout pizzeria that generates $20,000 a month should take into account a minimum organization interruption limit of $80,000 (4 months coverage). Other forms of BI coverage contains additional expense which will cover the expense of relocating and operating out of a temporary location till the major location is ready to open again. Note that offering these limits will need the business to offer substantiated proof in the kind of monetary statements.

It has been the busiest week of the year at our company with hundreds of callers inquiring about buying flood, earthquake and other forms of all-natural disaster coverage. Take out a few moments to assessment your policy for this coverage and if needed, make contact with your broker and have them talk about the different choices. A few hundred dollars towards upgrading your coverage can possibly conserve your enterprise tens of hundreds of thousands although maintaining your brand operational even through the worst achievable scenarios.

60 Responses to “Flood Insurance Not Enough Coverage for Hurricane Sandy”

  1. Buddy January 20, 2013 at 4:36 pm #

    I lately requested another mortgage. Loan approved pending ton insurance. My first mortage didn’t require ton insurance since my house isn’t inside a ton zone. Financial institution stated that FEMA mentioned that my house is within a ton zone. Can there be new things in FEMA rules?

  2. Louise January 24, 2013 at 2:18 pm #

    Can One just select the cheapest quantity of coverage? Say my house costs 72,000 can one obtain the insurance which will hide to 35,000 in harm to your building? I must have ton insurace basically buy this house because its in a bad risk ton area, nevertheless it should be being released from the ton plain later this season, and so i really simply want the ton insurance which will cost minimal. Any adivce?

  3. Seth February 27, 2013 at 7:42 am #

    My mortgage company recently notified me that I am now required to have flood insurance due to the new FEMA remapping of my neighborhood. What I didn’t notice at first is that the letter was dated for this year, but the period that insurance was requested for is 3 years in the past. They have automatically taken money out of my escrow account to cover the premium, and also have the matter is ‘under investigation’ and probably a mistake, but is this even legal? They told me that ‘had something happened, they would have covered me…’ Can they really charge me NOW, for an insurance policy that didn’t exist 3 years in the past?

    Please answer if this is in your realm of knowledge!

  4. Agatha April 12, 2013 at 12:29 pm #

    Im not a fan of insurance but isn’t this practice necessary so that the pool of people isn’t bankrupted? If your home floods, you can’t run out and buy flood insurance so someone else pays, I know this is an oversimplification and callous but how can this possibly work?

  5. Antione April 19, 2013 at 9:16 pm #

    Private insurers refuse to give flood insurance to people who live in flood plains. Yet people keep moving there. So the federal government funds flood insurance. When will we end this socialism?
    http://www.fema.gov/business/nfip/

  6. Louisa June 4, 2013 at 11:42 am #

    Example; Condo owner with Unit on the 15th. Floor. Any state law requiring owner to purchase Flood Insurance?

  7. Nestor June 6, 2013 at 5:40 am #

    Recently our sump pump broke during a big rain storm and our basement was flooded with over 6 inches of water. The cost to repair everything (nevermind our personal belongings) has been way beyond our flood insurance coverage of $5000. How can I get our insurance to cover our losses since the problem was the sump pump breaking not just the rain storms causing flooding? Right?

  8. Roman June 7, 2013 at 10:23 am #

    And is it true that flood insurance companies all offer the same rate? I tried searching for this information on google, but nothing really helps. If anyone knows, I really appreciate your answer. Thanks.

  9. Marcellus July 1, 2013 at 5:38 pm #

    I have a 50k equity line of credit. I only owe 17k on it TOTAL. I have flood insurance for 50k but the bank is wanting me to up it to 105K. this would increase my premium to 2500 a year instead of the 650. i am paying now. Is this appropriate? Can I contest it somehow? Any ideas?

  10. Noe July 2, 2013 at 10:20 am #

    My flood insurance when I bought my house 10 years ago was about $500 yearly. Each year it keeps going up, and up. I just got the statement for this years billing. It’s $1,200 now. Is there something that can be done? I feel like they are literally taking advantage of me, and it’s nothing I can do.

  11. Masako July 3, 2013 at 3:37 am #

    My loan was sold twice, and the third lender increased my flood insurance from $90k to $189K. This has resulted in an increase in my mortgage payment of more than 25%. I flat out can’t pay it. Is that something that they can change? I’m very distressed about this.

  12. Mickey July 3, 2013 at 7:16 am #

    We had refinanced a year ago and it was determined at that time we needed more flood insurance coverage to cover the amount of the loan. We got the additional insurance, then our mortgage was sold. 9 months later the new loan holder wants us to obtain more flood insurance (which our insurance agents assures us in unnnecessary) or they will obtain it themselves and put a lien on us. Is this legal?

  13. Earl July 3, 2013 at 12:53 pm #

    I have a home in breezy point. It was not burned on fire but i suspect there is great water damage. Probably 4 1/2 feet of water. Is there any FEMA or otherwise assistance that will help me even though i don’t have flood insurance? I probably have wind damage too.

  14. Earleen July 3, 2013 at 12:53 pm #

    I am under contract to purchase a home and prepaid my flood insurance prior to closing on a VA loan. Now, I am being informed that new zoning requires payment of over 5 times the original amount, plus a nearly 50% increase in homeowners… Wihtout the insurance, no mortgage. Will I be liable for anyting other thant he earnest money/deposit and all of the surveys and inspections I paid for?

  15. Sherry July 3, 2013 at 5:00 pm #

    If you are looking for more information on FEMA’s recent flood map changes in oxnard California where can you find it? Im interested in some type of flood zone determination and a quote. My insurance agent doesn’t know very much about it. How much does flood insurance cost? I have lots of questions any ideas?

  16. Scottie July 3, 2013 at 10:47 pm #

    We are planning to buy a home in north natomas sacramento area. We are just curious as to how much insurance might cost in this area including flood insurance considering it is in a flood zone. We are planning to spend approximatly $200,000.

  17. Filiberto July 3, 2013 at 11:29 pm #

    My home got flooded. Insurance denied the claim but I believe I still have a case. What kind of lawyer would I need that specializes in home insurance policies to see if I really do have a case?
    Sorry, I should have been more specific. My house was flooded due to a pipe burst.

  18. Mitsue July 4, 2013 at 2:47 am #

    I am doing a survey and this would really be helpful for me.

    Please let me know how much you pay for your home owner’s insurance.

    If you pay monthly or yearly.

    The location of your home.

    The value of your home.

    How big your home is.

    If you have flood insurance.

    And what you have as your deductable.
    Will people please ignore the idiot that just wants points and answer my question.

    How much do YOU pay for home owners insurance.

    Meaning, with the choices that you made, with the house that you have, how much do you pay?
    You guys are great!

    Please keep the answers coming.
    I really need the yearly rate.

    I am doing a report.
    I AM DOING A REPORT LIKE I SAID!

    I cant understand why people just don’t answer the questions on this site.

    That’s what this was made for.

    Not for the other person to ask “Why did you ask that”.

    I cannot understand this.

  19. Erin July 4, 2013 at 2:14 pm #

    We got water with Hurricane Irene. Will filing a claim make my premium increase? I was told that flood insurance is federal and therefore my premium will not increase. The only way it will increase is if the government decides to raise the price for everyone. Can someone confirm this for me? Thanks!

  20. Kris July 4, 2013 at 3:29 pm #

    Ok so Im doing a project and I have searched everywhere and they keep telling me to give all this information and I just dont want to be cause its a school project! So anyway can anyone tell me how much flood insurance is and who was/ is used with it ? (the company/ association?)

  21. Amalia July 4, 2013 at 4:51 pm #

    My boyfriend and I are trying to buy a house, but its in a flood plain so we need flood insurance. Any idea what companies to look at?
    we ended up shopping around and there are insurance agencies with cheaper rates that’s what was listed at the website some of you provided. and the only reason its in a flood plain is because of a giant creek behind it. since the house was built it has only flooded once and that was in 1997 when half of Louisville flooded.

  22. Christia July 4, 2013 at 7:18 pm #

    I mean really if there is no water in the water table and the lakes are dry why should you have to pay for flood insurance.
    How about t he fact that in inland areas of Florida You have to have flood insurance even though if your house got flooded 80% OF DOWNTOWN Tampa would be underwater and the insurance company would not be able to pay off anyway. What good is insurance when if you need it you wont be able to get it?

  23. Robin July 4, 2013 at 7:51 pm #

    I heard that if you live on a flood plain, you cant get flood insurance. That makes no sense. Can someone break it down for me?

  24. Sierra July 4, 2013 at 8:19 pm #

    What is the lowest possible amount a mortgage company will allow you to insure a house for flood insurance?

    Would it be the cost to replace the property or the amount of the loan? any one know about this?

  25. Perry July 5, 2013 at 12:36 am #

    Pipes froze. Broke. House flooded. Insurance adjuster said he will get the check sent as soon as possible. Anyone know how much time it takes untill they actually send it?Thanks

  26. Dusty July 5, 2013 at 4:47 am #

    I am purchasing a cottage for about $60k in Michigan. It is on an inland lake and is in an AE flood zone. How much should I expect to pay in flood insurance?

  27. Fred July 5, 2013 at 8:33 am #

    My house is in an area that has never flooded, but people close to me had their houses destroyed in a freak flood recently, and it got me wondering.

    Flood insurance is freakishly expensive. Do they really expect people to spend half of their lives paying off a destroyed house that they don’t even have any more?

  28. Cyndi July 5, 2013 at 12:53 pm #

    I’ve owned my home outright for eight years. Can I be forced to buy flood insurance? What will “they” do if I refuse to buy flood insurance?

  29. Darrick July 6, 2013 at 5:21 am #

    Or is every insurance agency going to quote you the same because flood insurance is based on national rules and regulations?

  30. Tynisha July 6, 2013 at 7:58 am #

    The condo has flood insurance, but I was told to purchase the coveage, I guess liability inside my unit. What is the inexpensive and reasonable coverage?

  31. Darrell July 6, 2013 at 10:45 am #

    boys with homes on the beach?

    I live on the Gulf Coast but far enough away from the water that I don’t need flood insurance. I live in the cheap section with order ordinary working people.

    But on the beach, the opulent condos owned by the Elite receive subsidies from FEMA to help them afford insurance.

    I’m tired to working and paying taxes so some rich jerk can live on the beach at my expense.

  32. Tristan July 6, 2013 at 1:55 pm #

    I live in Pittston, Pa and I have flood insurance for 150,000. My entire neighborhood is completely gone and there’s no doubt in my mind the’re going to be providing relief money. I lost everything, personal belongings, etc. etc and I am living at my daughter’s house and will have to relocate (I’m also 60 years old). Is it possible for me to both get flood insurance money and relief money?

  33. Christia July 6, 2013 at 2:09 pm #

    When we purchased our home in 2006, we were in flood zone X. About two years ago, the FEMA maps were updated, and we were moved into zone AE because of a creek/drainage ditch in our subdivision. We hired a surveyor to try and avoid the extra expense, but they confirmed that we were in AE. We are one house over from the AE/X border.

    We refinanced last month with the same mortgage company. However, they have now sent copies of their new flood certification that indicates we are in flood zone X and are not required to have any flood insurance. I checked the maps again, and I believe they made a mistake. But we are unsure what to do about it.

    Should we drop all of the flood insurance and enjoy our lower mortgage & escrow payments? Should we send our survey results and continue to pay the expensive flood insurance? Should we meet in the middle and take out a much-cheaper flood policy for zone X?

    I appreciate any advice or recommendations. Thank you!
    During this refinance, we received a Standard Flood Hazard Determination completed by LPS National Flood in Arlington, TX. This document says we are now Zone X. According to our elevation certificate done by a surveyor this summer, the base elevation for zone AE is 627.6. The top of the bottom floor of our home is 626.4

  34. Agatha July 6, 2013 at 2:31 pm #

    I live near Houston, Texas and I have regular renter’s insurance. It doesn’t cover flood or wind. Can I get supplemental wind and flood insurance if it’s just a rental house, not owned?
    Yes, I mean for the contents inside the house.

  35. Blossom July 7, 2013 at 8:55 am #

    If I’m going to buy flood insurance, how much coverage should I get with respect to the value of my house and belongings? Is there any kind of rule of thumb for coverage?
    BTW, I’m not required to get it, I am getting it on my own.

  36. Selina July 7, 2013 at 12:04 pm #

    Should the government continue to subsidize some flood insurance, as they do under the Emergency Plan? (and why of course)

    links regarding the topic would be helpful as well.
    thanks.

  37. Anderson July 7, 2013 at 12:32 pm #

    I am buying a home and someone just told me it will take 10-15 days to get flood insurance. Something about having to look at elevation maps, etc. Is this true?

  38. Grady July 7, 2013 at 7:06 pm #

    I live in Southern Arizona. Why should I pay for flood insurance if there is not a whole lot of rain in this part of the country ?

  39. Nakita July 7, 2013 at 10:11 pm #

    The county I live in told my mother in law that she could not purchase flood insurance for her home, because she was not in a flood zone. Is there any way around this? Besides she said she is willing to pay for it.

  40. Colton July 8, 2013 at 5:20 am #

    I live in a desert, doesnot flood but their maps show in a flood plain. Have lived here for 6 years and from the beginning never needed flood insurance, but now mortgage company is ordered to charge for it by FEMA demand.

  41. Kris July 8, 2013 at 9:54 pm #

    WE DID A REFIANCE ABOUT 13 MONTHS AGO. MY FIRST DOES NOT REQUIRE FLOOD INSURANCE, NOW MY SECOND HAS SAID THAT IT IS A REQUIREMENT. I HAVE THE PAPERWORK FROM BOTH THE FIRST AND SECOND THAT SHOWS THAT THERE WAS A FLOOD CIRTIFICATION DONE AT THE TIME. AND EVERTHING WAS OK FOR THE LIFE OF THE LOAN. ALSO ACCORDING TO THE FEMA WEB SITE AND ALSO MY INSURANCE COMPANY WE ARE NOT LOCATED IN A FLOOD ZONE. ZONE X IS WHERE THE PROPERTY IS LOCATED. I DO NOT HAVE A ELEVATION CIRTIFICATION ON THE PROPERTY, IF I WAS TO GET ONE IT WOULD COST ME ABOUT $700.00. NOBODY IN OUR AREA HAS FLOOD INSURANCE, AND THERE ARE OTHER PROPERTIES THAT SET LOWER THAN OURS. EVEN THOUGH MY INSURANCE COMPANY SAID I WAS NOT IN A FLOOD ZONE. THEY SAID I COULD PURCHASE A PREFERED FLOOD ZONE COVERAGE POLICY. THIS WOULD BE ABOUT $350.00 DOLLARS. I DON’T UNDERSTAND THE WHOLE CONCEPT. I HAVE ALREADY CONTACTED MY FIRST ABOUT ALSO DOING MY SECOND. I’M AT A LOSS AT THIS POINT, I JUST WANTED TO SEE IF ANYBODY HAD ANY IDEAS. THANK YOU.

  42. Olivia July 9, 2013 at 2:14 am #

    I’m in a flood zone by maybe 20 feet. The neighbor across the street lives closer to the lake and he says he doesn’t pay it. My home insurance is $1,200.00 a year and flood insurance is $1,800.00 add to that. My house is on a slab. Thank you.

  43. Jeremiah July 9, 2013 at 2:26 am #

    How much does flood insurance cost, as well as wind insurance?

  44. Loren July 9, 2013 at 5:21 am #

    Here is my list:

    1. Health Insurance
    2. Vision/Dental (if not covered by health)
    3. Homeowners/Condo/Renters Insurance
    4. Flood Insurance
    5. Disability Insurance
    6. Auto-Insurance

    Are there others anyone can think of? I could also think of Traveler’s and Auto-Repair Insurance but I’m not sure how many people have that.

  45. Jordon July 9, 2013 at 2:34 pm #

    Suppose your bank makes you buy flood insurance, but you don’t want to pay the extra thousands of dollars?

  46. Leroy July 9, 2013 at 4:52 pm #

    I am looking into possibly buying a house in Plumas Lake, CA. Can Any one help me out on what the flood insurance payment is in that area com paired to Natomas?

  47. Ernest July 10, 2013 at 4:44 am #

    I currently have a homeowners and flood insurance policy. Who do I need to contact regarding my plans? Insurance company? Mortgage company? Do I need additional insurance during the construction. The contractor will have his own liability and workman comp policy as required by the town. Thanks.

  48. Isreal July 10, 2013 at 8:53 am #

    I thought that flood insurance was rare and house insurance will not cover most of the hurricane damage

  49. Shanelle July 11, 2013 at 3:50 am #

    The National Flood Insurance Program was enacted to subsidize the flood insurance of those with beach front property, the 1%.

    We are all taxed to help the poor Bankers and Corporate CE0 to afford flood insurance on their waterfront homes.

    Then again, isn’t this the least we should do for our “job creators”?

  50. Noel July 11, 2013 at 7:54 am #

    Just spoke to a friend who purchased a house after Katrina that did NOT flood in the Katrina affected area insurance was $1200 / year. Now rates are $ 4500 / year same coverage same company. NO CLAIM. WHat’s the deal? How can they do this? Flood Insurance covers if the house floods. SO why are the rates so high?

    What is everyone else paying in Louisiana and what part of Louisiana are you in?

    I am looking to buy a home but cannot afford $ 375 / month just for insurance.

  51. Scottie August 1, 2013 at 12:58 pm #

    I had this happen last week during the heavy rains we had. We do not live on a flood plain and do not have flood insurance. Do I need to go pound sand? =( The adjuster may be here 2 weeks from last Thursday!!!
    That is how I define a flood, too, Coop.

  52. Rickie August 1, 2013 at 2:08 pm #

    I have been in my home for almost two years. Last year I had a escrow shortage and this year I had an escrow shortage. I purchased flood insurance last year and they are adding that to my escrow and I never requested it to be paid by my mortgage company it was something that I added a year after I purchased the home. Our mortgage payment has increased by $120 since we bought the house. I don’t understand all this stuff and I’d rather pay my own property taxes. Is this the better thing to do?

  53. Maribel August 1, 2013 at 5:24 pm #

    I would like to know what different types of insurance the U.S. government offers, particularly regarding Hurricanes and the damage they can cause. I already know flood insurance is one of them. Are there others? (i.e. damage caused by winds, flying debris, ect.)

    Please cite your sources, preferably with a .gov

  54. Marget August 1, 2013 at 8:42 pm #

    I live in Ohio and one year Im in a flood zone and the next year Im not required to have it. My mortgage company is saying I need it ,is there a way around flood insurance because I cant afford it and am not sure its required?

  55. Annabell August 1, 2013 at 11:15 pm #

    I own a commecial building in A8 flood zone and I have a mortgage that stipulates flood insurance. My flood insurance is abot $4000 a year, and rents are falling. Is there any way I can talk lender into dropping flood insurance? The first floor is unoccupied, so even 8 foot flood would not affect rental income. The building is more then 100 years old and never expirienced flood as far as I can tell.

  56. Jefferson August 2, 2013 at 1:05 am #

    Car insurance is the only insurance that people are afraid to use. Its ridiculous. I mean if you are sick you use your medical insurance. If your house gets flooded you use your flood insurance. If your tv breaks down you use your tv insurance.

    But when you rear end another car you try your best to give them money to repair the car instead of using the insurance that you pay your hard earned money for? I’m sorry but doesn’t this sound stupid?

    Isnt the point of paying for insurance is to use it when needed? Im sure all of use try our best to drive safe but when it comes time to use the insurance we try our best not to. if we have a scratch on our car we pay it out of our own wallet. These deductibles and price increases after using insurance is crazy.

    Anyways just my rant about car insurance. What do you guys think of it?

  57. Era August 2, 2013 at 3:53 pm #

    I pay over 1800.00 a year for flood insurance. I believe this will make my home difficult to sell, even lower the property value. Can I have my property taxes lowered because I live in an AE flood zone? Note, my home is 44 years old and has never flooded.

  58. Ines August 2, 2013 at 6:24 pm #

    I have a new 3-story townhouse. It is my primary residence and it was flooded with 2 feet of water back in Feb due to heavy rains. 11 other units in my neighborhood also looded. I went the cheapest route I could to repair everything and it cost me approx $4000 but it still isn’t 100% of what it was originally. Maybe 95%. Anyway, I saw in an IRS publication that I can not deduct just my repair costs. I have to have had an appraisal and then take the difference in fair market value as the deduction? I had my home owners insurance do an appraisal of the damages but they did no pay anything to me since I did not have flood insurance. What is the right way to deduct my losses?

  59. Ernest August 8, 2013 at 8:57 pm #

    The IL governor has declared my county a disaster area due to the recent rain and flooding. I have homeowners insurance, but ofcourse I dont have flood insurance, as I am not located in a flood plain. I did take in 2 feet of water and sewage back up, and I had probably $10,000 worth of appliances in my basement that took water and some are either totally broken or they are not working right. When in a declared disaster area, does the state offer grants to help under insured citizens, or does the state offer grants to the local city govt only, to assist in clean up efforts, etc.? Anyone know how that works and can you provide resources to me to find out more information? Thanks!!

  60. Sherwood August 14, 2013 at 2:09 pm #

    10 pts, just a poll, easy question.

    Say you have 4-5 100+ aquariums, would it be smart to purchase Flood Insurance?
    Flood Insurance doesn’t seem to be that bad of a price, especially if you don’t live near water.
    Actually you can buy Flood Insurance that covers aquariums.

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