Insurance Companies Make Mistakes
Financial disaster can happen because of high insurance rates. An example is the case of one couple who bought a house a few years ago and soon decided to sell it and buy another house. The new house stands on a two acre lot. The south side of the lot is located near a stream. Their insurance provider required them to have additional flood insurance which costs about $450 for the first year. The basis of the proximity to water which is the stream was stated in the EPA grid. But the grid did not mention that the stream is at the bottom of a steep 70 foot cliff. Meaning there is no way the house could flood unless the whole town flooded. But the town is located about sea level and their house is on even higher spot. They paid the insurance company just to settle but eventually appealed and afterwards got remediation.