Who Needs Flood Insurance?
A common misconception is that a basic homeowners’ policy will cover flood damage. That just isn’t the case.
Depending on where you live, the cost of flood insurance can vary, but it is rather inexpensive to purchase, particularly if you live in an area that isn’t considered high risk for flooding. It is important to keep in mind that 25 percent of floods occur in areas deemed low-risk, and severe flooding can financially ruin the uninsured.
According to the Federal Insurance Administration, only about one quarter of homes in areas vulnerable to flood have proper coverage. Some choose to roll the dice and remain uninsured and hope to get federal emergency assistance should a flood occur. Here is the problem with that logic.
A. You can only get assistance if your area has been declared a disaster area.
B. Most flooding events do not fall into that category.
C. Federal aid is funding that you are required to pay back in most cases.
Flood Insurance Rate Maps (FIRMS) are official maps of a community in which FEMA has delineated both the special hazard areas and the risk premium zones applicable to the community. These are great tools to help people decide if they need flood insurance and how much it will cost. For either of these two types of policies, be sure to ask your insurance agent exactly what is covered and what isn’t before purchasing. Don’t feel as though you are being difficult, go in prepared and ask lots of questions. Your financial future might depend on it.
Who needs Mine Subsidence Insurance?
Any homeowner whose property sits on top of or near an abandoned mine should seriously consider mine subsidence insurance. Most homeowners’ policies do not cover damage due to mine subsidence or mine water breakouts. Check your policy if you are unsure.
Only completed structures or buildings under construction may be covered by mine subsidence insurance. Fences, sidewalks, gazebos, pools, septic tanks, etc. are not covered in most cases.
Additionally, mine insurance often only covers the structure and not items inside that are damaged, such as a TV or appliances. Be sure to ask about this before purchasing.
The Department of Environmental Protection has made underground maps available that illustrate which neighborhoods are undermined. Go to www.paMSI.org or call 1-800-922-1678 for details.
