Quote:
Originally Posted by Mattyk72
So... why is it not legally required as it is in so called high risk areas?
Not having insurance isn't the entire issue either, the main problem seemed to be people who were underinsured. So they had it, just not enough coverage for a disaster the size of Katrina. But of course they were told they didn't need it.
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Flood ins is required for a loan if it is determined to be in a high risk area so by law they have to buy flood coverage along with their homeowners policy. One reason why allot of people were underinsured was because they carried what the law required. For example. If a person owns a $200,000 home and they owe $100,000 and are in a high risk area the law states they have to carry $100,000 the balance of the loan. It also does not require the insured to cover contents as that is a option they must choose.