Wall St Journal Letter

From the letter to the editor by me published in today’s WSJ, commenting on a prior article on the problems with Flood Insurance in Mississippi and Louisiana.

Well said Mr. Wilson. (Real Insurance Fraud 11/16/07)

Nationwide, only about 1 in 20 households have flood insurance. As Mr. Wilson pointed out, traditional property insurance does not cover flood. Business owners are exposed too. I estimate that about 1% of businesses I consult with have flood coverage. That percentage goes up after I blow the whistle on the possible losses.

According to the National Flood Insurance Plan, almost 25% of flood losses each year are to properties not in designated flood areas. Just because it hasn’t flooded before does not mean it won’t in the future.

Some who have never experienced flood waters think the cleanup is just a matter of drying things out. Wrong! Flood water is dirty, smelly, and contaminated by everything in its path – oil tanks, gas pumps, dead animals, sewerage… Cleanup is not done with mops and sponges. Shovels, backhoes, and decontamination suits are required.

Your insurance agent can provide a quote. You might be surprised how cheap the coverage is. Why risk a lot for a little?