I don't live in a flood plain, but I didn't think one could even get a mortgage on a property in a flood plain without flood insurance. I know I couldn't. I had to have a survey to prove that I wasn't in a flood plain. It might be a bit redundant, but you would have to be a fool to live in New Orleans, or along the Gulf Coast and not have flood insurance.
My 29-year-old son is a SSgt in the USAF stationed at Keesler AFB in Biloxi. He was born and raised in the DFW metroplex, where flooding is almost nonexistent. He and his wife were stationed at Keesler from 1996 to 2000 when Hurricane Georges hit. He was living in base housing and the only damage sustained was a downed tree. In August 2004, he was reassigned back to Keesler. In October 2004, he, his wife, and infant daughter bought their first home in the far NW section of Biloxi. At the time of closing, he called and asked our advice on what coverages he should have. At this time I should interject that we are an Allstate family - my father-in-law is a retired Allstate agent here in the Metroplex and we have had Allstate for the 33 years of our marriage. Our best advice was to absolutely carry hurricane coverage and discuss with his Allstate agent and mortgage company the other coverages they would suggest. Wells Fargo (the mortgage company) told him he did not need flood coverage as he was not in a flood plain. His Allstate agent told him he did not need flood coverage as he was not in a flood plain.
As my son was preparing for evacuation with Hurricane Dennis, he met with his insurance agent and asked if he was properly covered for any and all damage from a hurricane. He was told once again that he was covered for any damage to his house and contents and that he had nothing to worry about.
Katrina - he and his family were sheltered in the hospital on Keesler for this hurricane, as it was his "turn" to shelter as essential personnel. After 4 days in a hospital with no power and limited food (Keesler suffered massive damage to the base and the hospital was heavily damaged), he was allowed to survey the damage to his home. I received the tearful phone call that the house was still standing, but all inside was lost, due to at least 5' foot of water coming in the back door that was pushed open by what he assumed was high wind, due to the deadbolt having broken the door jamb with no exterior damage to it and a huge tree right outside this door having been literally pulled up the roots. I cried with him, thanked God that the three of them were safe, and assured him that everything else was just "stuff" that would be rebuilt and replaced by his insurance company.
The first indication of problems came the next day as he flew his wife and baby home to Texas, as there was no place for them to live. He contacted Allstate through one of the centers they had set up for advanced living expenses. His wife is a school teacher for Gulfport, gets paid once a month on the 1st, and their computer systems were down and checks not direct-deposited. His pay of the 1st had his house payment taken out. Money was non-existent. Allstate informed him that he did not have flood coverage and therefore no ALE.
The adjuster looked at the house on the 20th. He will be paid $500 to remove the tree from his backyard and replace only the section of fence where the tree fell. There was additional small damage to the roof and gutter. As for the interior of the house, his household contents, and the removal of the MASSIVE amount of debris in his front and back yard (a whole roof in his front yard and driveway, a boat in his back yard) will not be covered. This was all flood. The adjuster's suggestion - he qualifies for a SBA loan through FEMA to totally rebuild his house.
My son is not looking to the government to pay his loss. He is looking to Allstate to pay his loss. He relied on information from the "professionals" (his Allstate insurance agent) and was assured not once, but twice, that he was sufficiently covered should a hurricane hit that area. Is this an example of "good hands"?