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California Flood Insurance rip off- so check your policy

By
Services for Real Estate Pros with AIG, Allied, Fireman's Fund, CNA, Travelers,The Hartford, Pr

Flood insurance isn't a rip-off, I want to bring to everyone's attention that you may be overpaying for your Flood Insurance.  

****Double check your flood insurance policies.

I checked my Girlfriends Flood Policy and she and her husband have been paying $675.00 a year per property. This is more than double than they should have been paying for the past 4 years!

 If a person has a single story, no basement home, no previous loss, and do not live in Flood Zone, they qualify for Flood prefered rates! The max any flood Ins. residential policy offers is 250,000 building  and 100,000 contents with a 500.00 dollar deductible.

($500,000 flood insurance is offered for business customers only, check the FEMA site for all rates)

The preferred rate on a   $250,000  building and $100,000 contents policy  is $317.00 and down from there.

My friends have been paying $2,025.00 per year on 3 properties when they should have been paying $951.00 a year. This is a huge savings and can really make a difference on whether a household can get insurance they otherwise couldn't afford. Flood insurance covers mud slides, sudden dispersement of water and other flood occurance's and definitions you can find from your State Flood Insurance program.

Everyone, this is a nationwide program. For more information on how to qualify for preferred rates, go to www.floodSmart.gov. The program started May, 2004

Over a period of four years, the overcharge for my friends added up to $8,100. If the agent had rated the property correctly, it would have run my friends $3,804. This would have been a savings of $3,723.00 !!!

 

Comments (9)

Dwayne West
Atlanta Real Estate - Canton, GA
Canton Georgia Real Estate

This is good information. Thanks for the heads up. I think most Insurance is a scam of some sort.

 

Dwayne West

"the Atlanta Real Estate Specialist"

Aug 13, 2007 02:58 AM
Terri Habecker
AIG, Allied, Fireman's Fund, CNA, Travelers,The Hartford, Pr - Dana Point, CA
Life Matters & So Does Your Insurance Co

Dwayne,

I sell insurance and I truly do my best to insure my clients in their best interest, not mine.  Insurance is not cookie cutter, it is personal and whether I get a policy or not, I want customers to have a choice and as much information I can offer for them to make a decision.

Insurance is sure nice to have when you need it and I learn something new every single day. If you ever have questions regarding Insurance in California, I am here to help. If I don't know the answer, I'll find out and we'll all know!

Your State Flood Insurance program has a web-site that anyone can check.  They also have a phone # to call.

Aug 13, 2007 03:17 AM
Candy Henthorne
Results Realty - Spring, TX
Spring Texas Real Estate
This is great information!  I helped my neighbor get their flood insurance reduced.  Their lender said their property required flood insurance, so they were paying the maximum amount.   It is now corrected.
Aug 13, 2007 03:29 AM
Mark Lomas
Santa Barbara Real Estate - Santa Barbara, CA
Experience You Can Count On!

Thanks for the tip! Good post and all the best! If you ever have people for the SF Bay Area please keep me in mind and I would be very happy to reciprocate in kind. Love Dana Point...good luck this year!

Mark Lomas

www.MarinRealEstateBlog.com

Aug 13, 2007 03:47 AM
Terri Habecker
AIG, Allied, Fireman's Fund, CNA, Travelers,The Hartford, Pr - Dana Point, CA
Life Matters & So Does Your Insurance Co
I just checked out the website Floodsmart.gov. The Preferred Risk Policy at a lower cost is available nationwide. Very Cool! www.floodsmart.gov
Aug 13, 2007 04:41 AM
Terri Habecker
AIG, Allied, Fireman's Fund, CNA, Travelers,The Hartford, Pr - Dana Point, CA
Life Matters & So Does Your Insurance Co

Mark, sure will! I'll add you as an associate for the Bay area.

Candy, especially when it's lender required! See how much Realtors can help their clients? You will have this one for life!

Aug 13, 2007 04:45 AM
Terri Habecker
AIG, Allied, Fireman's Fund, CNA, Travelers,The Hartford, Pr - Dana Point, CA
Life Matters & So Does Your Insurance Co
I have some great news! My Girlfriend got a refund check from her over payment on her flood insurance!
Aug 31, 2007 07:39 AM
Terri Habecker
AIG, Allied, Fireman's Fund, CNA, Travelers,The Hartford, Pr - Dana Point, CA
Life Matters & So Does Your Insurance Co

Can you fight the flood map? Yes. I had an insured who was remapped and lender enforced flood Insurance. The home had been remapped to a 14 inch flood zone and the home was situated well above and back on the property. I checked with the City to see if the 14inches that was imposing the Flood insurance could be changed. The answer is yes. The owner (neighbors can pitch in on cost to help and apply too) An application can be sent along with recommendations and certification from a civil engineer. Approval is not guaranteed, but worth a shot.

May 19, 2009 02:39 AM
Anonymous
Tom

I understand that flood insurance covers all the contents of a house regardless of who owns the contents, up to the coverage limit.  This is different from homeowner's insurance, where if the property is not that of the house's owner, or the blood relatives or spouse of the owner, then you have to get a separate renter's policy to cover it. Is this correct?

 

Apr 14, 2011 05:29 AM
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