With the devastation of Hurricane Sandy still in our present, it is a good time to think insurance. Most of us Illinoisans do not have to worry about a hurricane rolling through our state. So why discuss it? Discussion needs to happen because in the world of insurance, it may not be as it appears. According to CNN Money: Homeowners in New York, New Jersey and Connecticut will save thousands of dollars in insurance costs after several state governors declared that Sandy did not make landfall as a hurricane, exempting them from insurers' hurricane deductibles. The only issue is the pain following Hurricane Sandy is just the beginning as millions of policyholders discover their insurance will not cover a majority of the damage done by the storm. Most of the destruction from the super storm has been caused not by hurricane winds, but by severe flooding from the tidal surge. Why is this relevant? This is where it hits a little closer to home. Traditional homeowner policies do not cover flood. Flood insurance needs to be purchased separately from the National Flood Insurance Program. Despite the experience of Katrina and numerous examples of widespread devastation caused by floods, less than 15% of homeowners nationwide have taken up flood insurance according to New York “The Street”. According to the NFIP website there is a 26% chance of flooding damage in a 30 year time period in high-risk areas. Welcome to Illinois where we do have risk for floods! Please review your insurance and your risk and contact Nixon Insurance for a flood policy quote!
Nicole Emery
No comments:
Post a Comment