Water can be a very powerful force when it becomes abundant enough, and flood damage can be very costly if you need to make repairs to your home. Unfortunately, many property owners are unaware that flood protection is not included in their homeowners insurance and must be purchased separately.
Flood insurance covers damage to your home from an overflow of inland or tidal water. If you live in a flood plain or near riverbed or wash, it is a good idea to sit down with an agent at TCIS-The Complete Insurance Source to evaluate flood insurance. Contact us today and get peace of mind.
National Flood Insurance Program Statistics
- Floods are the #1 natural disaster in the U.S.
- The average flood insurance claim in recent years is $35,000.
- From 2002 to 2011, total flood insurance claims in the U.S. averaged nearly $3 billion annually.
- New Jersey is the top state in the U.S. for flood insurance claims. More than $628 billion of claims payments were paid in the state in 2011 alone.
- People who live outside high-risk flood areas file more than 20% of NFIP claims and get more than 33% of disaster relief funds.
What Is the National Flood Insurance Program (NFIP)?
The NFIP was instituted by Congress in 1968 to provide flood insurance policies to homeowners, business owners and renters in communities that participate in the program. The flood program, which is administered by FEMA, works with more than 90 private insurance carriers to provide flood insurance to cover damages that result from flash floods, hurricanes, winter storms or heavy rains.The premiums do not change from company to company; they are set by FEMA and are based on factors like the type of construction of the home, the land the house is built on, the location of the home within the flood plain and other factors. The lower the risk of flood damage, the lower the premium often is.
An important thing to know is that you can buy flood insurance anytime; however, there is a 30 day waiting period after paying your first premium before the policy goes into effect. Don’t wait until a flood warning to consider buying flood protection.
Do I Need Flood Insurance?
Flooding occurs in all 50 states and is not covered in home or renter’s policies. But does that mean everyone should have flood insurance? The choice comes down to your level of risk. Unfortunately, that can be difficult to determine.According to FEMA, most people are likely to need flood insurance at some point. FEMA has flood plain maps for every area in the country, and it lists areas as 10-year, 30-year, 50-year or 100-year flood plains based on elevation, slope of the land, soil, proximity to water sources and other factors.
The flood program provides insurance coverage for up to $250,000 for your home for rebuilding and repair, and premiums are reasonably priced by most standards. Private insurers may insure above the NFIP limit, but you will pay extra premiums for that added protection.
Talk with TCIS, a member agent in the Trusted Choice network, to learn everything you need to know about whether your community participates in the NFIP program, and if flood insurance is right for you.
What Does Flood Insurance Cover?
Flood insurance covers physical damage to structures affected by flooding from heavy snowmelt, runoff following heavy rainfall, and so on. Your flood insurance policy will also cover any damage caused from erosion due to currents or uncommon water cycles (for example, if your home is built along a shore that collapses due to waves, currents or rising water).Damage caused by mudflows or mudslides can be covered, but the policy may have very specific definitions for a covered mudslide event. It’s important to read your insurance documents if you are in a high-risk mudslide area.
What is Not Covered by a Flood Insurance Policy?
Flood insurance does not cover water damage from burst pipes, water pipe leakage or sewage backups.While the structure of your home is covered in your flood insurance policy, all belongings, non-structural fixtures and furniture are not covered. Belongings, flooring, clothing and jewelry, among other things, may be covered for water damage under a standard homeowners policy.
Since every home policy is different, be sure to read the fine print and talk with your agent about whether the property damage portion of your policy is enough to cover damage or loss of your personal possessions.
How Much Does Flood Coverage Cost?
Premiums for flood insurance coverage vary greatly from state to state and area to area, and depend on a variety of factors including flood risk and the value of the home being insured. Flood insurance can be as low as $130 per year, for a renewable one-year policy.Where Can I Buy Flood Insurance?
If your community participates in the National Flood Insurance Program, you can buy your flood insurance policy from a local insurance agent. An agent who lives in your area will have the best information about flood insurance that is specific to your community and can help determine your need for this coverage.Contact us to learn how you can be prepared when waters rise.
reprinted with permission from trustedchoice.com
