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jerome8283
LIF Adolescent
Member since 5/06 633 total posts
Name:
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Insurance Scam
I received mail from my homeowners insurance company kindly informing me that the National Weather Service is predicting severe weather in our area this hurricane season and that my coverage does not protect me in the case of flooding and they would be glad to open a separate flood insurance policy to cover me. 
I recall this being discussed last year on this forum and most felt it was a scam to scare you into opening a policy. What do you think?
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Posted 6/11/08 7:22 PM  |
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Babe49
M...
Member since 4/08 1880 total posts
Name:
Maria
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Re: Insurance Scam
I wouldn't call it a "scam", because it's true. Home owner policies do not cover floods, but yes, they are trying to get you to buy another policy.
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| Posted 6/11/08 7:24 PM |
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KLSbear
LIF Adult
Member since 1/06 1908 total posts
Name:
Karen
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Re: Insurance Scam
There is a push on now in part because the agency that defines the flood zones will be redrawing the flood districts to update them with geological changes and other related info. If you are currently in an "X" zone it means you're in minimal danger of flooding. If you purchase flood insurance while you're in an "X" zone and are later re-districted into a higher-risk zone, you are grandfathered in at the lower rates. If you wait and get the insurance later it could cost you more. Depending on the zone you are in I think your mortgage company can insist that you have flood insurance.
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| Posted 6/11/08 7:38 PM |
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jerome8283
LIF Adolescent
Member since 5/06 633 total posts
Name:
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Re: Insurance Scam
Posted by KLSbear
There is a push on now in part because the agency that defines the flood zones will be redrawing the flood districts to update them with geological changes and other related info. If you are currently in an "X" zone it means you're in minimal danger of flooding. If you purchase flood insurance while you're in an "X" zone and are later re-districted into a higher-risk zone, you are grandfathered in at the lower rates. If you wait and get the insurance later it could cost you more. Depending on the zone you are in I think your mortgage company can insist that you have flood insurance.
How can I determine what zone I'm in?
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| Posted 6/11/08 8:07 PM |
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Babe49
M...
Member since 4/08 1880 total posts
Name:
Maria
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Re: Insurance Scam
You can call your insurance company and just tell them you want a quote, they can then find out what flood zone you are in.
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| Posted 6/11/08 9:56 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
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Re: Insurance Scam
FEMA maps
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| Posted 6/12/08 7:04 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Insurance Scam
Posted by KLSbear
If you purchase flood insurance while you're in an "X" zone and are later re-districted into a higher-risk zone, you are grandfathered in at the lower rates.
That is... until they decide to drop you and not renew your policy.  (which is a commonality in Long Island)
I wouldn't be purchasing flood insurance for this reason alone. If you want it, get it. But I wouldn't get it based on having a grandfathered rate if they rezone you.
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| Posted 6/12/08 10:05 AM |
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