No Flood Insurance?
This left me rather amazed - noticed this in the online edition of Newsweek . They were interviewing an economist with the Insurance Information Institute, who said,
Is it possible for homeowners in storm-prone places to get flood insurance?
In order to have flood-related coverage you have to have purchased a policy that's underwritten by the federal government through the National Flood Insurance Program. Unfortunately many people do not purchase that even though it's relatively inexpensive and ubiquitously available. It's through the same agent that sells your standard homeowner's policy, but it's the government that [provides] the insurance.
Don't people know about federal flood insurance?
Oh, people know about it. Many people because they're not obliged to do it, they say, “It won't happen to me,” or they hope to get some federal aid afterwards. But in the end they're going to wind up coming short. It's playing Russian roulette with your most valuable asset--your home. I would say that you would have to be insane to not buy flood coverage if you live anywhere along the Southeast coast of the United States.
People can afford to have a house but can't afford to protect it - what's up with that?