May is right around the corner, bringing back memories of our wettest month on record. With that in mind, know your options to protect against a flood. Below are frequently asked questions and guidelines when considering flood insurance.
IS DAMAGE FROM FLOODING COVERED BY MY HOMEOWNERS, RENTERS OR COMMERCIAL POLICIES?
No, a standard homeowners or commercial policy covers storm damage such as hail, fire or lightening , sleet, ice, snow. Most policies will also cover water damage caused by plumbing, household appliances, or an emergency sprinkler system, but not rising water or run-off. You can protect your home, business, and belongings with a flood insurance policy.
I’M NOT IN A FLOOD ZONE, WHY DO I NEED FLOOD INSURANCE?
More than 25% of all flood claims come from low-risk areas. You don’t need to be near water to have flood damage.
WILL MY COVERAGE BE EFFECTIVE IMMEDIATELY?
No, there is a 30 day waiting period before coverage goes into effect. In order to have coverage by May 1st, your policy will need to be purchased no later than April 1st.
WHAT DOES FLOOD INSURANCE COVER?
Not all insurance companies offer the same coverage. Please discuss the following points with us.
- Damage to the physical structure and your personal belongings inside your home or business.
- Damage caused by erosion due to currents or uncommon water cycles.
- Damage caused by mudflows or mudslides
- Damage to cars and ATVs
- Additional living expenses while your home is inhabitable
- Belongings outside of the buildling including landscape, septic systems, patios, hot tubs, etc.
- Currency, precious metals, or stock certificates
- Basements, crawlspaces, walkouts basements
- Items in your basement such as clothes, electronics, furniture, carpeting, paneling, bookcases, built-ins, etc.
HOW MUCH DOES IT COST?
Premiums vary greatly from area to area and depend on factors including flood risk and the value of the home or property being insured. The sample quotes below are for illustration purposes only.
A flood policy costs about $450 annually for a home valued at $250,000 with $100,000 of personal property in a low to moderate risk area.
It costs approximately $2,000 annually for an office building valued at $500,000 with $50,000 of contents in the same area.
We hope you find this information helpful. If you questions or would like a quote, please contact our office. Quotes are free with no obligation.