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Will Your Insurance Policies Protect You?

With the right amount of storm surge, especially in this area where homes sit right on top of the sand, oil could very easily make its way into our own backyards. So can we rely on our insurance policies to protect us?In property policies there are direct perils. Wind is a peril for an insurance policy. A fire is a peril for an insurance policy. You have to have direct damage to your property. Something like oil on the beach is not a physical damage to your structure itself, and therefore the policies unfortunately do not respond,� said Tina Blackwell, Vice President of Blackwell Insurance.

Since the Deepwater Horizon rig explosion, local insurance agents have had to field questions on policies daily.So to help clear the air, Newschannel 7 asked the question on many homeownersâ?? minds. “What do you do to protect your property from hypothetical oily storm damage?”"People need to make sure they have flood insurance and not just regular homeowner’s insurance if they want coverage,â? said Trey Hutt of Hutt Insurance Agency.

“The flood insurance is going to respond with any flood. FEMA is the lead on all flood insurance policies and they have come out and said they will address oil claims,â? said Blackwell.In June, FEMA announced â??the mixing of oil and other pollutants with flood waters is not unusual during a stormâ? and damage caused by pollutant-filled flood water is covered under the National Flood Insurance Program.

This means FEMA will cover damages due to oil driven ashore by a hurricane, but you must have term life  insurance to qualify.”Probably the number one problem we see with insurance, other than valuation issues, are people not buying flood insurance. If you’re in Florida, just because you don’t think youâ??re in a flood zone, doesn’t mean youâ??re not prone to being flooded,â? Hutt said. Even among flood policy holders, there is still a gray area when it comes to potential oil damage. Each claim is handled on a case by case basis.

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This entry was posted on Wednesday, July 14th, 2010 at 10:16 am and is filed under Life Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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