Just when you thought you couldn’t get flood insurance you realize that there are private insurers providing flood insurance. But, before you perk up and look for a link... They are available to you only if you have a lot and I mean a lot of money stashed away.
While AIG has been doing this for the past two years, as a wealthier homeowner now you have others offering flood insurance to a limited number of homeowners with fancy pads is relatively not the riskiest flood areas. So, if you have a lot of money and an expensive house you CAN get very good flood coverage.
This interest in flood coverage has been instigated by the devastating hurricanes Wilma and Katrina which have popularized the need for flood insurance. However, it looks like it is how rich you are that dictates the availability of flood insurance.
Private insurers are hoping to do big business by cashing in on the worries of rich homeowners in the not so risky flood-prone areas. This is also to be seen as a major step on the part of private insurers when it comes to flood insurance. Traditionally flood insurance is provided by government insurers and don’t cost that much and private insurers shy away from giving flood insurance and usually offer it only after the government insurance policy has kicked in.
But, these flood insurance policies for the rich have more coverage than the government ones and include benefits for lot more eventualities that can occur during a flood. For example, these private policies cover such expenses as food and hotel stay for displaced homeowners. Keep in mind that these companies are not big insurers and are not claiming to be trailblazers in the homeowner's flood coverage scene.
So, while the big homeowner's insurance companies are busy denying even windstorm coverage you cannot expect them to take up flood coverage, right?
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