Posted On: September 24, 2007, 11:57 am CDT

Posted By: pw

I've read all the comments to-date and heartily agree with the "finally someone got it right" comments. I also agree that mortgage brokers and real estate agents downplay the need for flood insurance. Sadly, many don't understand what a homeowners policy covers and what it excludes. Someday, they'll coordinate with the insurance industry to have more continuing education in this important aspect of their job.

If there's a remote chance of exposure to flood damage, wouldn't they want their own home protected? Get the facts out up front, include flood coverage, if it's applicable, in all the calculations, discussions and estimates so the prospective homeowner knows what it will really cost to own their new home. Too many people try to cut costs to get a client into a home, then they can't afford the actual costs of living in it! They need to be able to pay for full insurance coverage, utilities and maintenance of their home, not just the mortgage payment!

Don't put new homeowners on the road to losing their investment; be honest and inform them of the coverages they NEED to protect their home in case of loss due to any peril they're exposed to.

Honesty really is the best policy. I'll bet no one has gone back to a mortgage broker or real estate agent and complained that they sold them on having flood coverage after they've experienced a loss due to rising waters!