Trying to Decide on Flood insurance (washer, furnace, heater, appliance)
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I live on a moderately sloped hillside. About a 100 yards away, the slope becomes a much steeper mountain side. Last year we had a wildfire on the mountain that burned almost all the vegetation. At that time I purchased flood insurance in case of mudslides and or floods.
Even then I felt like the risk was pretty remote. The mud would have to flow pretty far across a street and park to get to our house. Also, there is a catch basin nearby, and the slope is such that most should flow away from the house. In a normal rainstorm there is no chance of water ponding -- it all flows down the street.
The county aggressively re-seeded the mountain side and the vegetation grew back pretty well. Now I'm trying to decide if it's worth the $300 to re-up the insurance.
Any advice from people who have had or not had flood insurance long term?
If your not in a flood plain and your mortgage company does not require it, then don't renew. If your comfortable without it, then you probably do not need it.
I've never carried flood insurance, house has never flooded. However, about 6 years ago a 1,000 flood visited my area and I was really close to losing, not everything, but a lot. I was out of state when the storm hit and couldn't even drive to my house upon return. I was wading home in the dark when a good Samaritan picked me up an gave me a lift... in his giant lifted SUV.
If you have any doubts, carry the flood insurance for a year or two until you can further access your risks.
Had flood insurance in south Florida. Moved. When we moved, moved to a place where Noah would be knocking at the door before flood insurance would kick in. In your case? Drop it. Get mud insurance instead. Seriously, I bet dollars to donuts that if you did have damage it would be denied as a "flood." OTOH, I can offer you some inexpensive Wobbly Weeble insurance, in case a Weeble falls over and knocks your home off a cliff.
Flood insurance won't cover a mudslide. You need to check to see if your regular homeowners will cover that, if not, if you can, get a rider for that coverage. As for flood insurance, a flood is defined as water being where it usually isn't-it's pretty broad but also stipulates that two consecutive yards must have this water to be considered a flood. So, if you get a heavy rain and water ponds in your back yard and your neighbor's back yard and you both get water intrusion in your basement, that is a "flood".
Now, flood insurance coverage is very minimal. The MAX you can get covered for your house is $250,000 and an additional $100,000 for your "stuff" in the house. NONE of your "stuff" is covered in your basement. There is only coverage for basements for things attached to the house, drywall, carpet, etc. and for major appliances, furnace, washer, dryer, etc. If you have a theater room with a $15,000 projection tv in your basement, too bad, not covered. The thinking is that you can get all of your "stuff" to a higher level...
Above ground there is coverage for most everything, up to the limits of the policy.
It sounds like your risk is low, which is why your premiums are only $300ish. There are a lot of people still digging out from flooding who were in the same risk category though too...
Like any insurance, you have to decide if the risk of flooding is such that it makes sense not to get the policy and have to be willing to deal with the consequences if you do flood.
Carry it for a few years yet. While flooding half way down a hill is rare it does happen and you are in the right cirucumstance to be that rare victim.
Note that the cost of a flood is astronomical. Very doubtful it will be less than a 100 grand even on a smal house.
Flood insurance isn't THAT expensive IMO, and flooding causes so much damage. I have always carried it - - obviously, given my location - - but even if I moved to another area, I would still carry flood insurance.
The flood maps can only give you a rough idea, and lower the cost of your flood insurance. I have seen areas that aren't supposed to flood at all, flooding worse than anyplace else around.
If you have a flood, it will be the best $300 you ever spent. If you do not have a flood event, it will be a waste of money.
It is not likely that anyone on CD can predict whether you might have a flood. Do whatever makes you feel comfortable.
take a look at the policy closely though. Many strictly define a flood and have tons of exclusions.
There is only one flood policy, through FEMA. The coverage and exclusions are the same for everyone. Some companies offer additional flood coverage but you have to have the base FEMA policy to start. If FEMA covers it as a flood the hugely expensive extension policies cover as well.
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