My agent keeps nagging me to buy flood insurance. We live in a flood zone, but there hasn’t been a flood in twenty years. How should I decide?
Answers | 2
You may want to consider these questions...How much would you be out if you lost everything? How much is it to insure against the potential loss?
If you are in a flood prone area - it isn't a matter of if, it's more likely a matter of when. What is the likely risk of flood? Is it every 20 years? Have measures been put in place to limit flooding?
Do the math. Would you be out more if you added up the average vs. the potential loss?
There are maximum limits of coverage. So, it probably would be wise to exceed those limits. It wouldn't be wise to have a $500,000 property when $250,000 is available to replace it - unless money is not an issue.
Can you afford to lose what could be lost?
Insurance is generally considered a bargain after a loss.