Reply #13: deductible ain't the issue

[pitohui]

for many home-owners even home-owners who have a $250 or $500 plan when it's a hurricane the deductible is raised to $2K

it isn't the $2K, i'm sure the senator can come up w. $2k to meet a deductible just fine

it's the argument between the nat'l flood insurance coverage and homeowner's coverage, you buy homeowner's insurance that covers the complete cost of home and contents, whereas flood insurance is capped

lott's home was completely swept away, ain't nothing left but a slab

if he could collect under his homeowner's, he can afford to rebuild and refurnish his $750K home because he would be receiving the policy maximum

but flood insurance, assuming he even had it, is capped at around $250K, it doesn't even come close to making him whole, if he had a mortgage, which most folks do, he would still be in debt and required to make payments on a property that no longer exists

state farm argues, and correctly alas under current law, that his loss is a flood loss and he can't claim anything under homeowner's policy


you may not care for mr. lott, ain't got much use for him myself, but his entire neighborhood and many others were destroyed like this, including many fine homes, and it becomes a big issue

if we can't insure homes worth more than $250K (including contents) then this puts a really low limit on the contruction industry, what homes people can build and buy, it puts an upper limit on the economic development of the region

so it is an issue that prob. needs to be addressed in some manner

i read his interview abt this back in january, more recent information from anyone greatly appreciated