Spring is here and the rainfall has already started. Rain is essential to keep our lands healthy but can also cause lots of unwanted damage.
Residents and businesses should contact their insurance agent to review their flood insurance policies, or lack thereof, to see where they may fall short. The damage caused by flooding can be severe and sometimes devastating to your property and premises. According to FEMA, just one inch of water can cost more than $25,000 in damage. Don’t assume flood claims are covered under your current insurance policies.
Here’s five things you should keep in mind about flood insurance:
- Waiting periods – Don’t wait to obtain flood insurance, there is typically a 30-day period before your policy goes into effect. Waiting until hurricane season is upon us may be too late, act now.
- Homeowners – Typically standard homeowners insurance policies don’t cover flood damage. While your policy may cover the damage from a busted pipe, it won’t cover excessive rain or even a backed up outside sewer. Flood prone areas are mapped and mortgage lenders will require you to have flood insurance if your property is located in a flood zone. But what if you aren’t in a flood zone? Do you need flood insurance? Flooding can occur anywhere, and statically 20% of all National Flood Insurance Program (NFIP) flood claims come from people outside of high-risk flood zone.
- Renters – Don’t assume because you rent you don’t need flood insurance. It is possible your landlord has not invested in a flood policy. If your landlord hasn’t and you experience a flood, your personal belongings would most likely not be covered.
- Businesses – Offices are usually stocked full of costly furniture, technology, and files. What happens if torrential rain causes the water to rise outside and your office floods? If you don’t have a commercial flood policy, you could be stuck paying for the water damage and even mold remediation. Just like your typical homeowners insurance policy, your commercial property insurance usually doesn’t cover flooding.
- Educate – Know your options and educate yourself. Do you know the difference between water damage vs. flood damage? If not, check out our previous blog that talked about it CLICK HERE. Just because you’re not living or working in a designated high-risk flood area doesn’t mean you won’t be affected. Take the time to check out FEMA’s National Flood Insurance Program for more information on flood zones, maps, and preparation tactics or call NFIP call center at 800-427-4661.
There is a lot of myths about flood insurance, but one fact, flooding will happen every year and in every state. The question then becomes, will you be affected? Clogged drains, backed up outside sewers, etc. can happen to anyone. Does your insurance cover you? Contact a licensed insurance agent today to see if you have proper coverage. Flood insurance shouldn’t be an option but a necessity in everyone’s insurance arsenal.
Have questions about your personal or commercial insurance? Contact us to speak with a licensed insurance professional.