[StBernard] FLOOD INSURANCE

[Westley Annis]

Heather,

The reason to keep the flood insurance is for the grandfather clause.  As
long as you maintain continuous coverage, you will be able to stay in the
same rating as you are now, plus you could transfer that rating to a buyer
should you sell your house.  If you drop coverage, you lose that grandfather
clause.

As for homeowners insurance, you may be able to switch to a different type
of coverage.  You need to talk with your insurance agent about that.

Two other things to keep in mind.  If you are having your home demolished,
once it has been demolished you can purchase pure liability coverage.  This
is dirt cheap, run's about $1 for every $1,000 of coverage ($100 buys you
$100,000 coverage).  Not everyone needs this.

If you bought a new home because of the storm and have your new home owners
policy with a private insurance company, your policy should cover your old
land. Again, check with your agent.  For those who have the La. FAIR plan,
you will need to purchase a separate liability policy since the FAIR plan
does not extend coverage outside the boundaries of the home it is written
for.

If you are rebuilding your home you need to purchase a builder's risk
policy.  Your homeowners policy will not cover any losses to your home while
it is being repaired. 

Westley

-----Original Message-----


I'm hoping someone can answer this question for me...I'm torn about my
insurance...I currently have Flood & H/O insurance on my gutted houses. Now
I'm torn b/c I don't know why I have to keep my flood insurance...if another
storm comes through again...they aren't going to pay me anything being it is
gutted homes. Did anyone cancel their flood insurance if they are in limbo
of returning?

I understand to keep my H/O insurance b/c I need it for the liability b/c I
have a built in pool and no fences and of course in case if anyone decides
to go on my property. I know the insurance company will not let me change my
H/O policy...so I still have contents even though it is empty. 

Just wondering what people that are in limbo are doing about their
insurances. 

Thanks,
Heather