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Ericson Insurance Advisors President Spencer Houldin and CBS Coverage Group Managing Director Sharon Emek offer flood insurance advice as sections res...
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But millions of people were in the path of hurricane -- rein in.
Many are still -- course flood damage to their homes or -- their businesses and some of those people.
-- flood insurance but others know well how much.
-- what does it cost some what does it cover how do you get it -- you know if your policy even coverage flood.
Joining -- out president of Ericsson insurance advisors -- Holden and managing director partnered CBS.
Coverage group -- and and make ends -- start with.
Flood insurance I'd would be California for a long time and lived in the Sacramento valley in there.
The valley in us water goes down there and so that before they built levees that town flooded so they require people to live in that flood plain.
Even though it hasn't flooded in years to buy flood -- the mortgage you can get a mortgage without one that's correct told that is.
Kind of forced on some people -- what about these people that have been in Vermont New Jersey and upstate New York all of a sudden found out that little creek is.
Raging river.
And don't realize that their homeowner's policy doesn't cover surface water ground water when answers are -- In the any need to be near creek Hawaii could just have -- -- on your property in the amount of rain that we had that -- Seven to twelve inches in and six hour period.
We a lot of flooded basements this week in a lot of unhappy people find out -- -- homeowner's policy doesn't cover it.
Because a flood exclusion comes -- but they would never think to buy flood insurance through the National Flood Insurance Program yeah and independent what's this National Flood Insurance Program.
Is it like most of these things that it covers very little or is or is it decent.
Well it does for a homeowner and it's decent in terms of the actual building it'll cover at replacement cost up to 250000.
Dollars.
So if your home is more valuable in that and that's the maximum mountain you're gonna get you're gonna cover the rest of -- above that yes you have to but what about the contents the contents of actual cash value so that means it's at that the minister and tremendous amount of money it's because it's a -- used old furniture so actual cash value is not their value -- at all.
So explain that again they actual catch values so I bought a TV 4000 dollars five years ago and do I get a thousand dollar TV.
No you know maybe you may make -- worth 50050.
Dollars today because TV's him to get out it's not worth much in terms of actual cash value since depreciated value.
It's not replacement cost on your belongings -- people know this.
They don't know this the other thing they don't realize is that contents and appeasement.
Are not covered nor is the improvements that they make to a basement so when the water rises in have a client right now -- a foot of of water in her basement.
Just finished her basement six weeks ago no coverage for the damage to the wall no covers the work out equipment.
In the basement only the mechanical such as the -- in the water heater.
Right but that were used.
Org things now but nothing on basement anything below ground level is not covered even on a flood policy in terms personal property so -- -- purple what to do with to be.
Why should I get a flood insurance policies and it that the whole purpose of the flood program was formed back in the sixties because the government was coming when disaster aid anyway.
So those people that were near the water.
Maybe they could chip in and help pay for the damage and so it's a very basic contract really designed for the person has a house of close down the Mississippi River.
It's not designed like a homeless policy's very broad is not designed for the small losses like a few inches of water in your basement all right so -- If the water comes from up above.
I'm good on most policies correct correct correct so if by -- if I have a leak in my roof.
Or I have busted pipe correct.
Except there's some new exclusions cold wind driven rain in some policies.
And there's a whole the whole issue at that.
What is wind driven rain and what is not sense of some policies are even excluding wind driven rain.
And ever I remember after Katrina there were I think over Mississippi there were a number of lawsuits.
Against the insurance companies and the state one after the insurance companies but it and and I think insurance companies lost -- that and had to pay.
That wind driven rain in the water that came in and so forth and so but a lot of the Apollo for the insurance companies and said CEO we're not doing business here anymore.
Poster that the problem with Katrina as we don't know what came first to what -- to house was it to win -- damaged a house or was it the fact that the levees broke.
And the water came in and -- My experience was you very -- companies did pay claims under the wind coverage.
But a lot of companies that said it wasn't wind damage it was flood damage but they couldn't prove -- because nobody was there in between the two events.
All -- to all the people we're seeing they're trying to clean up there that have these raging rivers now going through their front yards.
Well look there I don't -- not a lot of other than that the house was destroyed.
-- there -- two issues here what is most people they know what his flight today has changed.
It's no longer about being in any there are certain maps that that the -- flood zones around the country that FEMA has come up with in communities.
Need to agree to the FEMA.
Requirements in order to be a National Flood Insurance Program eligible.
And many communities today are not even participating in the Axel even if a homeowner want to that purchase flood insurance -- community.
Wasn't involved in the program it's not available to them today let's can happen -- communities that never thought they -- plant area.
And so what people need to do is they really need to talk to their trusted choice independent agent.
-- -- -- -- Aren't enough to -- -- -- part of the National Flood Insurance Program and if ports available to them and if they're not in a high risk so it's so cheap it could be a -- 200 dollars a year.
And if they're not participating and they need to get their communities to become part of the program.
Frustrating it is there that Israeli -- as well yes mr.
Sharon thank you both very very much thank you ha.
The mistake people make with this insurance is assuming that it covers all -- -- fire theft and everything else but water.
Now one thing that insurance companies they are reporting like the plague if you just heard what happens is.
You renew your policy you don't read it won't the last thing after regular insurance -- -- go drag out of for a copy of it see what you do have I'll bet your policy does not cover flood.
And if it does.
Doesn't cover that much.
The problem is most natural disasters or not well covered in most policies and if you wanna live near flood prone area.
-- get a flood policy but even then.
Be prepared to rebuild or repair your home mostly out of your own pocket and that's my take.
