[StBernard] Suggestion to Prevent Future Losses

[Westley Annis]

Westley,
 
I am writing in response to your letter in reference to flood insurance
being included in mortgage escrow even if the property is not in a flood
zone. Possibly if it is included in the mortgage escrow, a new homeowner
would not have to wait the 30 days for the flood insurance to become
effective.   
 
My family and I are from Chalmette, LA. I grew up on the corner of Mumphry
and Missouri.  My sister purchased a house on Sinclair St, Chalmette on
August 25, 2005 just 4 days before Katrina made landfall.  Her home is not
in a flood zone but she purchased flood insurance on her own.  If her home
was in a flood zone and flood insurance was mandatory, she would have been
covered w/ flood insurance on the date of her act of sale but b/c she
purchased flood insurance on her own, the flood insurance is effective 30
days after purchase.  As I have mentioned previously, she purchased the
flood insurance 4 days before the storm (on the date of her act of sale).
Of course, we are doing what we can to appeal the decision by the insurance
company and we are awaiting an official word on "was is it wind damage or
was it flood damage".  My sister was smart enough to buy flood insurance but
because of this "loop hole" she may not be covered.  It is bad enough that
her home was destroyed even before she had the opportunity to enjoy the
benefits of owning her home but the fact that she may not be covered by the
insurance she purchased is unreasonable.  I pray your fight for changes in
our insurance system corrects the many wrongs that all of us are facing.  
 
Thank you,
Sylvia Silva