Insured for disaster: How to prepare for flooding, fires
"In terms of flood insurance, the
The risk of a potential flood or wildfire is ever present in the
The good news is that there are options available for
"The issue isn't whether or not it is available, the question is how much are people willing to pay for it," said
Fire insurance
Most homeowner's insurance policies in
Zall said last year's catastrophic losses due to wildfires didn't help the situation. The losses will put a major strain on insurance companies and reinsurance companies -- those that provide insurance to insurers -- which could ultimately come down on the policyholders, he said.
Though there are mechanisms in place to prevent providers from spiking rates without approval from the
"What could happen is carriers can pull out or back out of the local market and not insure homes in high fire risk areas, which means many policyholders could potentially be left without many options," Zall said.
That scenario hasn't played out yet, but even if it did, those living in "high-risk" areas would still have an option: the California FAIR Plan. Still, Zall said, that coverage is more like a "last resort policy" and that residents should always look elsewhere first due to the plan being a very "stripped down, basic fire policy."
For those that run into problems -- likely those in areas like the foothills where there are issues with overgrown brush and vegetation -- Davis said there are things that can be done to make an insurer more likely to offer a policy. Those steps include things like creating a defensible space around a home or structure and clearing out fire fuels.
Flood insurance
Flooding is the nation's number one natural disaster. Unlike fire -- covered under most homeowner's insurance policies -- flooding is not, which is a common misconception, Zall said.
For some, flood insurance brings a peace of mind. For others, it's a requirement, like for people who took out a federally-backed loan to buy a house in a designated high-risk area.
Both
Areas like downtown
Areas deemed high-risk -- like in south
"I think too many times we misunderstand the damage water can do, and how only one inch of water can cause tens of thousands of dollars of damage," Zall said. "We often think flooding can only occur if there is a dam failure or levee break, some sort of catastrophe, but it can start from something as simple as street flooding."
The maximum limits available under the NFIP for residential structures is
Zall said for people who have homes or property valued at more than those limits can also purchase an "excess flood policy," which can essentially cover the gap from where the NFIP left off.
"An important thing to remember when purchasing a policy through the National Flood Insurance Program is that there is a 30-day wait for it to go through," Davis said. "A lot of companies only have a 10-day wait, but that program takes longer, so it's important to purchase a policy well in advance."
Flood insurance policies can also be purchased through private insurers.
For more information on ways of getting insured, visit www.insurance.ca.gov.
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(c)2018 the Appeal-Democrat (Marysville, Calif.)
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