Flood Insurance Doesn’t Have You Covered
Tuesday, April 25th, 2006 Catastrophe PropertyBy now, thanks to the horror of last year’s hurricane season, most people know that standard homeowner’s insurance doesn’t cover flood damage. And so, as this year’s storm season approaches, it makes sense for you to consider purchasing flood insurance for your home. In a lawsuit currently going on in Maryland, attorneys argue that insurance companies induce homeowners to purchase flood insurance by telling homeowners that in the event of a flood loss to their primary residence, benefits would be paid to them which would make them whole after satisfaction of the deductible, and which would be in an amount sufficient to return their property to its pre-flood condition, up to the policy limits. The defendants however say that Congress when it created flood insurance in 1968 never expected it would pay for every eventuality and was simply intended to supplement victims’ rebuilding efforts.
