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Originally Posted by 2one3E90
Wait when those Hurricanes and natural disasters came. Did insurance cover peoples cars and pay out? Or did people literally loose there assets in that you couldn't salvage anything despite insurance?
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Gov't runs the FEMA flood insurance. It's expensive and covers almost nothing. All insurers re-sell the gov't "coverage" for the same price.
The rule of thumb is it covers the cost of what you owe on your mortgage plus whatever they think your household goods should be worth. Reminder: This is the same government who thinks you're wealthy if you make over $40k as a single person.
However, there are also limits. $250k on house, $100k on belongings and $2500 on anything "valuable". Again these are hard limits on "what you owe" on your mortgage, not the house value.
Also it is illegal for any insurance company to sell you coverage beyond the flood insurance. The gov't doesn't like competition when stealing your money.