I read something a day or two ago that said about half the houses in New Orleans had flood insurance (probably because half the houses have mortgages). The maximum benefit available, BTW is $250,000. Over that, you are on your own.
In California, very few people have earthquake insurance because it is not required by lenders. I don't live in earthquake country but I get an offer to add it each time I receive a renewal (the offer is required by law at each renewal). If I took it, it would double my premiums. I don't know what upper limitations there, if any, on the policy, but I do know that there is a huge deductible and co-insurance feature that runs deep into the 5-digit realm. I'm not sure if there are different rates for different parts of California or if it is all one rate.
Most people don't buy it because it is expensive, has those huge deductible and co-insurance requirements, and their neighbors don't have it. If all the neighbors don't have it and an earthquake hits, you can bet your last dollar that the government is going to bail them out somehow (probably with low interest loans) while it won't do much, if anything, for the ones who bought the insurance and are stuck with high deductibles and co-insurance. |
