Miami Homes May Require Flood Insurance
Hurricane Katrina dropped more than 14 inches of rain on Miami-Dade County, causing between $600 million and $2 billion worth of damage to Miami homes, but homeowners may be in for a rude awakening. Unless locals have flood insurance for their Miami homes, "they might not be covered for the damage from Katrina."
Less than half of Miami homes have flood insurance, with only 389,073 policies in action out of a total of 852,278 homes in the county.
"People without a mortgage or not living in a" FEMA classified flood zone may not have flood insurance for their Miami homes. "For homes in a flood zone, flood insurance is usually demanded by mortgage lenders. But homeowners who have paid off their loans have the option to forgo coverage."
For those who are insured, it is rarely the insurance company that pays to repair the damage. The bulk is paid for by the National Flood Insurance Program. The insurance companies just process the claims. Once a claim has been resolved, insurers turn to the federal government for reimbursement for what they paid homeowners.
Less than half of Miami homes have flood insurance, with only 389,073 policies in action out of a total of 852,278 homes in the county.
"People without a mortgage or not living in a" FEMA classified flood zone may not have flood insurance for their Miami homes. "For homes in a flood zone, flood insurance is usually demanded by mortgage lenders. But homeowners who have paid off their loans have the option to forgo coverage."
For those who are insured, it is rarely the insurance company that pays to repair the damage. The bulk is paid for by the National Flood Insurance Program. The insurance companies just process the claims. Once a claim has been resolved, insurers turn to the federal government for reimbursement for what they paid homeowners.
