Hello, all,
My mother-in-law is a 64 year old long divorced woman with a home that is insured for $64K for dwelling, $35K for personal property, and $100K on personal liability. Her premiums are over $2K/year, which is excessive, but pretty normal for this area. (We were flooded by Hurricane Katrina). Because she didn't have flood insurance with Hurricane Katrina hit, she took a community development block grant, which came with a clause saying that she would be required to carry flood insurance on the property for the rest of the history of the property. She does not have a mortgage or any other liabilities.
Her salary is about $40-$50K/year, but it was much less than that until recently. She doesn't have a whole lot in terms of savings, maybe about $30K in various accounts. She's planning on working for a few more years, and she's a nurse, so her employment prospects are pretty good. Once she retires, she'll get social security, but my wife and I should be able to support her as far as most of her needs including, I think it is likely, her housing situation. She'll probably end up moving in with us. My wife has no siblings.
My specific questions I'd like to address are:
What are her options as far as the policy? Her insurance company has said that they cannot offer a 'leaner' policy (higher deductible, etc.)
Do you think she can do without? I think that her current policy is costing her way to much for what she would get out of it if something were to happen. I am worried a bit about liability, so...
Could we get a policy with just liability? Is that even a good idea? I worry about lawsuits and what not, but I also have never heard of anyone getting a claim from this part of their homeowners policy. Is it common or ridiculously uncommon?
If we don't have a homeowners insurance, can we still get flood insurance? If so, how?
Does the forum have any other ideas that I didn't think of that can 'solve' this situation?
Thanks in advance
