The tropics are full of big storms right now, which is a stern reminder for millions of Americans to be sure their flood insurance policies are up to date. Once you are in the warning cone, it is too late to buy protection.
Remember that general homeowner policies and flood insurance policies vary in what they cover, and under which circumstances they will pay out.
The Standard-Times in New Bedford, Mass., reminds us that even if you have coverage, the cost of cleaning up can be really expensive:
“The deductibles are typically based on 2 to 5 percent of the insured amount. In other words, if a home has a $300,000 policy and a 2 percent deductible for wind damage, the owner could have to pay for up to $6,000 in damages.
“A homeowner could have to pay for deductibles whether they have a private insurer or rely on the FAIR plan, the government-sanctioned insurer of last resort for property that private insurers will not cover.
“Depending on the policy, there can be deductibles for wind, named storms or hurricanes. If the damage is caused by a tropical storm, a hurricane deductible would not apply, Chuck Robinson, president of Rogers & Gray Insurance Agency said.
“It’s better to know a policy’s fine print before a storm hits. Homeowners who think they have a $500 deductible could be shocked to learn after the fact just how much they have to pay with their own money, said John R. Beauregard, vice president at Sylvia & Company Insurance Agency Inc. in Dartmouth.”