Flood insurance deductible (1 Viewer)

Thanks for all of the input. I guess a little more detail is needed. I actually lived in the house from the early 80's to the early 90's. My parents then sold the house. Last year, I purchased the house back from the people who bought it from my parents. I know for a fact that the house has never flooded. There was an instance back in the 80's where we had water at the front of our subdivision but at least 50-100 yards away from the home. We tried to transfer the previous flood policy ($450/year) but FEMA required a new elevation certificate. IIRC, we are 2 feet below sea level. However, I really feel that it is unlikely we would flood but there is always a chance.

So imma tell you a story- from 2016. July to be exact.

Im an insurance agent - my best friend of 40 years called me in July 2016 - asking me how he can reduce his flood premium. I told him "why mess with it? it comes from escrow so who cares" - he was adamant about reducing his premium. Used to pay $1400. then 1700. Then 2100. So i said there really isnt much you can do outside of lowering valuations and DONT DO IT. He was like yeah it just sucks. Paying all this money for nothing as im 8 ft above my damn street! I said i get it but you dont want to mess with.

10 days later, 2 am i get a call. From him.

in Walker LA. he has 4 ft of water in his home. We go get his wife and daughter because he was oout of town. Sunday he calls to find out wtf going on, how/who to call etc etc.

At that moment, he said " dude" long pause and i already knew. I took off my content coverage. im like WHAT??!??!. I told you....yeah i know. Wanna know how much he saved? $197
Wanna know how much he lost? All of it. Every. last. bit.

I still have photos as we went and gutted his home and did as much as we could to save him every dime.

Point is, YOU never think you will flood. Until you flood.

oh and if you look at your actual policy- I would bet that the increase in your ACTUAL premium is minor versus FEES. ( just be glad you dont have commercial bldg. I have clients that pay AS MUCH IN FEES as in PREMIUM )
 
So imma tell you a story- from 2016. July to be exact.

Im an insurance agent - my best friend of 40 years called me in July 2016 - asking me how he can reduce his flood premium. I told him "why mess with it? it comes from escrow so who cares" - he was adamant about reducing his premium. Used to pay $1400. then 1700. Then 2100. So i said there really isnt much you can do outside of lowering valuations and DONT DO IT. He was like yeah it just sucks. Paying all this money for nothing as im 8 ft above my damn street! I said i get it but you dont want to mess with.

10 days later, 2 am i get a call. From him.

in Walker LA. he has 4 ft of water in his home. We go get his wife and daughter because he was oout of town. Sunday he calls to find out What the Fork! going on, how/who to call etc etc.

At that moment, he said " dude" long pause and i already knew. I took off my content coverage. im like WHAT??!??!. I told you....yeah i know. Wanna know how much he saved? $197
Wanna know how much he lost? All of it. Every. last. bit.

I still have photos as we went and gutted his home and did as much as we could to save him every dime.

Point is, YOU never think you will flood. Until you flood.

oh and if you look at your actual policy- I would bet that the increase in your ACTUAL premium is minor versus FEES. ( just be glad you dont have commercial bldg. I have clients that pay AS MUCH IN FEES as in PREMIUM )
Going with no contents coverage at all has to be the silliest thing someone could do for their primary residence. Everyone has stuff that'll need to be replaced when they flood. My Orleans Parish clients who went through Katrina get it, but I have to hammer it into clients' heads in Jefferson because they say, "We didn't flood in Katrina." And then there's those who didn't flood in the Bywater too who think it can't happen to them because it didn't for Katrina. They just found two frggin cars in the sewerage lines underground around Lafitte Greenway. Flooding around here will happen to everyone at one point or another. The new flood maps make me scratch my head.
 
So imma tell you a story- from 2016. July to be exact.

Im an insurance agent - my best friend of 40 years called me in July 2016 - asking me how he can reduce his flood premium. I told him "why mess with it? it comes from escrow so who cares" - he was adamant about reducing his premium. Used to pay $1400. then 1700. Then 2100. So i said there really isnt much you can do outside of lowering valuations and DONT DO IT. He was like yeah it just sucks. Paying all this money for nothing as im 8 ft above my damn street! I said i get it but you dont want to mess with.

10 days later, 2 am i get a call. From him.

in Walker LA. he has 4 ft of water in his home. We go get his wife and daughter because he was oout of town. Sunday he calls to find out What the Fork! going on, how/who to call etc etc.

At that moment, he said " dude" long pause and i already knew. I took off my content coverage. im like WHAT??!??!. I told you....yeah i know. Wanna know how much he saved? $197
Wanna know how much he lost? All of it. Every. last. bit.

I still have photos as we went and gutted his home and did as much as we could to save him every dime.

Point is, YOU never think you will flood. Until you flood.

oh and if you look at your actual policy- I would bet that the increase in your ACTUAL premium is minor versus FEES. ( just be glad you dont have commercial bldg. I have clients that pay AS MUCH IN FEES as in PREMIUM )
I totally understand what you are saying. We lived in Youngsville in August 2016 and remember the flooding that happened. Luckily, we were spared from that. I'm not considering lowering my "contents" coverage but just increasing my deductible. I do realize it would be more "out of pocket" expense in the case of a flood. I think I would rather put the difference in a savings account than just give it to the insurance company.
 
I totally understand what you are saying. We lived in Youngsville in August 2016 and remember the flooding that happened. Luckily, we were spared from that. I'm not considering lowering my "contents" coverage but just increasing my deductible. I do realize it would be more "out of pocket" expense in the case of a flood. I think I would rather put the difference in a savings account than just give it to the insurance company.

I would too. I have max deductibles on all my properties, but my condition is not the same as everyone else's. Still, I'd rather have a 5% deductible than pay an extra 3 or 4k each year.
 
2 things to remember with insurance.

1. It's intended for catastrophic loss. Many people forget it's not a maintenance policy. If you have lots of fluid capital, feel free to lower your coverages and raise deductibles at your purview. If you don't have a spare dollar to your name, then cover yourself as well as possible.

2. You should always have coverage that relates to your geographical area. I.e. in LA Flood, Fire, and Wind. Maybe in CA, Fire, Quake, and Mudslides etc...
 
FEMA has a draft National Flood Insurance Policy reform bill in the works that is supposed to take the place of the current flood policy (which has been extended for a few more years, but was due to expire in 2021). There is a provision in the bill that calls for lower flood premiums- which will be a percentage-based premium. There are a number of other factors to consider with the calculation of the premium. Point is that the legislation is "supposed" to offer relief in the area of premiums. There are also calls for fee caps for policy servicers, etc. It's a lengthy bill and honestly, I've abandoned a review of it due to a flurry of other, more pressing banking reform bills and regulations needing review for my company.
 

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