11/29/2005

Flood Insurance in Utah

Many of us in the state of Utah had never considered flood insurance until the disaster that was created by hurricane Rita and Katrina. The MSNBC article states that all homeowners should have some degree of flood insurance, whether it is partial or full coverage. Flood insurance can protect you from large storms, rising water or clogged drainage systems. This could happen to anyone throughout the U.S. even in areas that flooding is never a concern. Considering local situations such as St. George and the homes that sit along or near the Virgin River, should if not upon completion to building their homes purchase flood insurance due to the high risk that is increased by the location. If your home is in an area with slight to no risk regarding the event of a flood, the insurance premiums can cost as little as $112 dollars per year. This would certainly bare some relief of the fact that what you have invested your life into is secured.

4 comments:

Elijah said...

I think that flood insurance is definitely a good idea. Especially with the floods that took place last year in the St. George area. I know there were a lot of houses that were being built that got ruined that didn't have flood insurance. I think it would be a good idea to have flood insurance even before your home is completed.

maddy said...

The idea of flood insurance has definately become an issue in society, but I'm not convinced that the everyday consumer has yet discovered its importance. With rising energy costs, especially as winter approaches and the holiday season on the horizon I personally don't have an extra $112 to spare. One must way the benefits of the insurance against the possibility of a flood and damages that could be caused. I ask myself if my opportunity cost of sandbagging my home and not paying the insurance premium is worth it--though this may be a little too extreme. I guess we'd all be planning to use some money from our tax returns before spring hits and the floods come...maybe.

Savannah said...

The first time I thought about flood insurance was during the floods in St. George. Many of the people who lost their homes and property were not prepared. So it is a good idea to have some coverage, even when you don’t think you need it.

Dr. Tufte said...

-1 on Tyler's post for poor sentence structure/

-1 on Maddy's comment for spelling errors.

My understanding is that national flood insurance is so cheap that in almost all locations the expected benefit exceeds the expected cost.