Homeowners Insurance And Flooding
Massive floods are becoming more common. Each year, floods cause an estimated $8 billion in damages in the United States. They cause more than $40 billion in flood damage world wide annually. These trends are not improving. In the United States, insurance claims from floods increase an average of 2100 claims each year. Regardless of the cause of flooding, damages caused by floods can be extensive, which makes insurance claims difficult. Even just an inch of water in your home can cause tens of thousands of dollars in flood damage. For many in our country, living with floods is just a part of life. But, that does not mean you cannot protect yourselves. Here is what you need to know about homeowners insurance, flood insurance, and flood damage.
Homeowners Insurance, Flood Inusrance, and Flood Claims
It is important to understand that your standard homeowners policy DOES NOT cover flooding. It will cover water damage from rains if it comes into the house through a window or roof. It will also cover water damage from burst pipes. However, it will not cover flooding from storm surges, flooded rivers, and many other types of floods. For this reason it is necessary to work closely with your insurance broker or agent to understand what is excluded and included in your homeowners policy.
Coast lines are particularly vulnerable to flooding. Florida has over 1,300 miles of Coastline. With an average elevation of just 6ft above sea level every home in the sunshine state is at risk. Flood zone maps are a great resource to calculate your risk of flooding. Your mortgage issuer may use these maps to determine whether flood insurance is required. However, homes in low risk flood zones accounted for nearly 20% of all flood damage claims last year. Your homeowners insurance will cover most types of water damage but will not cover flooding. Flood Insurance is an absolute must.
The Flood Emergency Management Agency (FEMA) may offer federal assistance if a storm hits and you do not have coverage. However, the event must be declared a federal emergency and post-disaster grants are typically less than $10,000. That amount is not likely to cover the costs of your flood damage. You may need to replace flooring and walls, as well as personal property and appliances.
The National Flood Insurance Program (NFIP) was created to provide affordable flood insurance to homeowners in high risk zones. This program is administered by the Flood Emergency Management Agency. Insurance claims for structural damage are capped at $250,000. Whereas, insurance claims for loss of personal possessions are capped at $100,000 under the NFIP.
The NFIP is not the place to get flood insurance for your home. Many companies offer private flood insurance as an alternative way to protect you in case of flood damage. Private flood insurance policies may provide higher coverage caps and possibly lower rates. They may also be able to offer coverage more quickly than NFIP. There is a typical 30 day waiting period associated with coverage for flood damage by the NFIP. Compare your options when it comes to your flood insurance, but be sure to move quickly to avoid lapses in coverage. Having a lapse in coverage for your home is risky. Quality insurance brokers offer complimentary insurance policy reviews to ensure you are protected in case of an insurance claim from flooding. This can help your peace of mind in knowing your policy is accurate and covers all aspects of flood damage.
Preparing for Hurricane Claims and Flood Damage
When you know a flood is coming there are many steps that can be taken in order to minimize flood damages. Simple solutions like adding sandbags to vulnerable areas around your home may suffice to divert water and minimize damages. If your home is at high risk for extreme flooding, floodproofing your home may be a better option. Flood-proofing your home can be costly. However, it will minimize your risk of flood damage and a total loss insurance claim should you experience flooding. When updating your home with floodproofing features always be sure to consult a licensed, bonded, and insured contractor.
Once waters have receded and it is safe to return to your home, you will need to assess flood damages. This is when you need a public adjuster to help you along the path to recovery. Do not make repairs until your adjuster has inspected the damage. If you must make repairs in order to prevent further damage be sure to take pictures first and save all receipts. Better yet, hire a professional mitigation service to help avoid further damage. If you attempt to do mitigation by yourself, your insurance company might deny your insurance claim. Your insurance broker can help you coordinate with the mitigation service and document all damage.
After mitigation and inspection, your insurance broker will help you with all documentation and paperwork. Filing an insurance claim, whether it is for minor damage or a total loss, is complicated. Working with a trusted insurance broker will help make that process easier and save you lots of headaches.
Final Thoughts
If you want more information on what is covered by your homeowners policy and what is covered by flood insurance, contact us. The team at Streamline Insurance can walk you through flood claims and what you need to do to be prepared. Remember, not all water damage is covered by a homeowners policy or a business policy. However, getting a free consultation will let you know if the damage you have experienced will be covered by flood insurance or homeowners. Do not wait for a massive flood to know what is covered by who – get the answers now.
