Questions are now being raised about this type of coverage as storms continually threaten nearby residents.
The mandatory evacuations have been lifted for Butte County residents and now the spotlight has been placed on flood insurance policies.
The spillway at the Oroville Dam has been damaged and with the storms this year, the whole area is threatened.
Many people have been looking into flood insurance policies in order to make certain that their coverage will protect them against the risk of a torrent released by the damaged spillway. This problem has suddenly become much more evident as a number of storms have increased water levels held back by the dam. As new storms approach, the threat only renews itself.
That said, for people who have not yet purchased flood insurance coverage, it is too late to buy it now. As an immediate threat is already present, the coverage would not be applicable to that specific peril. Moreover, even if the situation didn’t appear to be quite as urgent, most of these insurance policies take thirty days to become effective. Therefore, even if a homeowner was able to purchase a policy, if the next store was to cause a problem, that problem would be excluded from the coverage.
It is for this reason that consumers are regularly encouraged to buy flood insurance policies early.
It’s too late to buy them when the threat is already imminent. Still, many concerned residents whose properties are threatened by the Oroville Dam have been reaching out to insurance companies throughout California. Some have been purchasing coverage through the National Flood Insurance Program (NFIP) managed by the Federal Emergency Management Agency (FEMA).
Those consumers are hopeful that if damage must occur, it will happen after the initial thirty days have passed. To buy those flood policies, consumers must purchase from one of a list of approved insurance companies that sell the coverage as FEMA does not sell NFIP through state branches.
Other residents of the area are buying their flood insurance policies through private insurers in the hopes of obtaining a better deal. For some people, that involves making dozens of phone calls to compare options.