Ignorance is not bliss when it comes to flood insurance, especially for those who don't realize until after a disaster like Superstorm Sandy that their home or business doesn't have any coverage under standard policies.
Insurers and their agents have tried for years to get the word out about this glaring coverage gap. But too many policyholders either don't pay attention or don't recall being told they needed to buy a separate policy from the National Flood Insurance Program (NFIP) to cover that specific risk. Others may get the message but choose to pass on the option—either because they don't believe they can afford the additional coverage, or figure the worst-case scenario won't happen to them.
In any case, insurers and their agents are often blamed (fairly or unfairly) for either neglecting to tell clients about the lack of flood coverage in standard policies—or if they do, for not being clear or convincing enough to prompt more exposed policyholders to buy the federal insurance.
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