What if federal-flood insurance, with an opt-out provision, was automatically added to standard homeowners and commercial-property policies—at least for those in high-risk zones? PC360 readers responding to my Jan. 30 blog about this notion were of two minds—most who took the time to write loved the idea, but many cited potential pitfalls.

In my prior blog, I emphasized that under my plan flood coverage would remain voluntary—policyholders could choose to opt-out at the time of purchase, or when it is time to pay their bill. However, I suggested that including it automatically would alert policyholders in no uncertain terms that by refusing the optional coverage, their home or business could be exposed to substantial out-of-pocket losses if a flood or storm surge should hit.

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