Flood Insurance
Although every homeowner insurance company has been announcing to all their customers that flood damage is not covered under their policy, the question is continually raised; flood’s not covered ? No, damage from flood water is not covered under your homeowner’s insurance policy. It is covered, however, under your FLOOD insurance policy.
Flood Damage
Flood damage occurs when rising water from a rainstorm or windstorm causes damage to your home or its contents. The key word here is "rising”. Water from a storm that comes into your home through a window or a hole in your roof is not flood water. That water is coming down, not rising. It may be easier to understand flood water as "dirty” water. That is to say, it is water that has poured onto the ground and then has risen into your home or, water that has poured from a river or lake onto the ground and then into your home. It is dirty water.
When to buy Flood Insurance ?
Unless your home sits on top of a hill or mountain, you should purchase flood insurance. FEMA reports that almost 30% of flood insurance claims paid each year are for flood damage to structures that are not in a hazardous flood zone. Significant damage is caused by flood water resulting from the failure of the infrastructure in older neighborhoods where the infrastructure has not been maintained properly. If the water from rainstorms cannot go down, it will always rise and in many cases into homes and buildings.
Is it expensive ?
Since flood insurance is provided through FEMA, the rates are very affordable compared to if the coverage was purchased through a private insurer. If your home or building is located in a "hazardous” flood zone, the rates will be significantly higher than if it were not. The rates for a dwelling in a hazardous flood zone depend on how much higher the structure was built than the "base flood elevation level”. This level is determined by the flood elevation survey and is provided on a flood elevation certificate.
The flood policies issued through FEMA have a maximum limit of $250,000 for dwellings and, therefore, your lender may require you to purchase "excess” insurance to accommodate the amount of the loan on your home. "Excess” flood insurance coverage is outside the National Flood Insurance Program, and can get quite expensive.
What is covered ?
Your home and your contents, that’s it. There is no coverage for outbuildings, shrubs or your land. If flood water destroys your yard and all your ornamental plants, you will have no coverage. There is also a deductible that reduces your reimbursement and must come out of pocket. Most flood damage is limited to, your floors and floor coverings, your furniture that is on the bottom floor and the drywall that covers the walls in your home. There is, however, always the chance if you live in a valley, the flood water can raise to the 2nd level of your home.
Rather than take a chance with nature, contact us to discuss your options and rates for this valuable coverage to protect your most important asset.