Tulsa World: Assess your need for flood insurance

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Assess your need for flood insurance

By KATHY KRISTOF Tribune Media Service
Published: 11/2/2008 4:15 AM
Last Modified: 11/12/2008 12:10 PM

If you own a home in California, chances are you already have some type of fire insurance. But many people don't realize that it's flood insurance — not fire insurance — that protects them from the mudslides that often follow the state's wind-blown autumnal blazes.

Even those whose homes are not in official flood zones, but are nearby or are in the shadow of a charred hillside, should consider a policy.

Flood and mudslide risks soar in areas hit hard by fires, said Butch Kinerney, spokesman for the National Flood Insurance Program. Fires denude hillsides and leave an oily residue on the ground, increasing the chance that rain will pool and flow along the surface rather than soak in, causing floods.

Once the rain does get absorbed, the earth becomes wet and heavy. Huge parts of the hillside can break away, causing mudslides.

Flood insurance, like earthquake insurance, is stand-alone coverage that can be sold in conjunction with a homeowner's policy. But it has separate limitations and triggers.

Under most flood insurance policies, homeowners are eligible for coverage when a rising tide of water inundates at least two properties or 2 acres of normally dry land. But the water does have to come from outside your home — not inside.

So if your toilet overflows or your pipes freeze and burst, that's covered by your standard homeowner's policy.

Flood policies impose separate deductibles for structure and contents coverage. There is no coverage for temporary living expenses if you're forced out of your home. Contents are replaced at their actual cash value. And flood policies don't cover landscaping or swimming pools.

Maximum flood insurance coverage is $250,000 for structure and $100,000 for contents when buying through the National Flood Insurance Program.

In those high-risk areas, the coverage is also costly, Kinerney said. Someone living near the beach in Florida, for example, may pay $6,000 annually for a policy. However, the average cost is about $500 a year, and those who are in low-risk zones can pay as little as $119.

Still, it makes little sense to buy any extra coverage if there's no chance you'll need it, said Robert Hunter, director of insurance with the Consumer Federation of America. The smartest thing to do is consider your personal risk.

The first step is to consider the government's assessment of your flood risk. You can view or buy an actual flood map for your area at tulsaworld.com/femamap. If you want a simpler version, go to tulsaworld.com/floodsmart.

If your area has a flood map, the site will respond by telling you whether your risk is low, moderate or high. It will also estimate your flood insurance premium.

However, if there's no current flood map, do a self-assessment of your risk.Write to Los Angeles Times staff writer Kathy M. Kristof at Personal Finance, Business Section, Los Angeles Times, 202 W. 1st St. 90012, or e-mail kathy.kristof@latimes.com.

By KATHY KRISTOF Tribune Media Service

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