According to the National Flood Insurance Program or (NFIP), floods threaten 20% of Americans, and cause billions of dollars in damage each year. While most homeowners insurance policies cover water damage from pipes bursting or water dAccording to the National Flood Insurance Program or (NFIP), floods threaten 20% of Americans, and cause billions of dollars in damage each year. While most homeowners insurance policies cover water damage from pipes bursting or water damage due to a broken window caused by a storm, they almost never cover damage from flooding. That’s why if you live in a high-risk area, it’s important to have both homeowners insurance and flood insurance.
Generally, flood insurance will cover damage to the structure and contents of your home or business caused by flooding. This can include damage caused by:
– Rising waters that enter your home through doors, windows, or other openings
– Water that overflows onto your property from nearby rivers, lakes, or reservoirs
– Water seeping into your home through cracks or holes in its foundation
– Mudflow; a type of landslide that includes mud, water, rock, and debris
– Sewer backup; when water from overloaded sewers or drains backs up into your home
And of course, there are some things that flood insurance doesn’t cover, including:
-Damage caused by moisture, mildew, or mold that occurs before or after the flooding event
-Losses incurred if you fail to maintain your policy or allow it to lapse
-Economic losses such as lost business income or revenue
Flood insurance is often an optional coverage, but depending on your home’s flood location, some lenders may require it. Always work with a trusted insurance agent who can help you find the right coverages for your situation. amage due to a broken window caused by a storm, they almost never cover damage from flooding. That’s why if you live in a high-risk area, it’s important to have both homeowners insurance and flood insurance.
Generally, flood insurance will cover damage to the structure and contents of your home or business caused by flooding. This can include damage caused by:
– Rising waters that enter your home through doors, windows, or other openings
– Water that overflows onto your property from nearby rivers, lakes, or reservoirs
– Water seeping into your home through cracks or holes in its foundation
– Mudflow; a type of landslide that includes mud, water, rock, and debris
– Sewer backup; when water from overloaded sewers or drains backs up into your home
And of course, there are some things that flood insurance doesn’t cover, including:
-Damage caused by moisture, mildew, or mold that occurs before or after the flooding event
-Losses incurred if you fail to maintain your policy or allow it to lapse
-Economic losses such as lost business income or revenue
Flood insurance is often an optional coverage, but depending on your home’s flood location, some lenders may require it. Always work with a trusted insurance agent who can help you find the right coverages for your situation.
According to FEMA, flood claims occurred in every state in our country in 2016 with the average claim cost in excess of $31,000. Just because your property doesn’t sit next to a stream, river or other body of water doesn’t mean you won’t be impacted. Our recent hurricanes are a great example. Heavy rains can overwhelm drainage systems, run-off from hillsides can seep into your basements and levees can fail. Pretty much anywhere rain falls is where flooding can occur, although, rain is not always the reason. Additionally, it is important to note that flood insurance is NOT included with your standard homeowners insurance policy.
For most of us, we won’t have to experience a disastrous home loss such as a flood, fire, earthquake or other disaster. That doesn’t mean any of us should be less prepared for such an event should one occur. Preparing a home inventory can be a large task, but taking the time to do so can make a difference of thousands of dollars when it comes to your claims settlement as well as simple ease of processing your claim.
