If you own a home in a documented flood zone, there’s a 26 % chance of experiencing a flood over the course of a 30-year mortgage. And while they are more common in some areas, floods can happen anywhere. In fact, 25% of all flood insurance claims each year come from property outside of high-risk areas!
Flood damage excluded on Homeowner Policies
Be aware that flood damage is specifically excluded from ALL basic homeowners policies. Fortunately, you can purchase a separate Federal Flood Insurance policy through one of many private insurance companies that write and service the policies for the government.
Flooding is the temporary inundation of normally dry land caused by the overflow of inland or tidal waters, the unusual or rapid accumulation or runoff of surface waters, or mudslides caused by flooding. Floods can result from storms, hurricanes, melting snow, dam or levee failure, or even inadequate drainage. According to the National Flood Insurance Program (NFIP), a wet situation is considered a flood if two adjacent properties are under water. In rural areas, at least two acres must be submerged.
Limits of Coverage
Unlike homeowners insurance, flood protection is not designed to return a home to its pre-disaster state. It is meant to help flood victims avoid financial ruin. Residential buildings may receive up to $250,000 in coverage, while coverage for non-residential buildings is limited to $500,000. A separate contents provision may be added, but coverage is limited to $100,000 residential/ $500,000 non-residential. There are separate deductibles for buildings and contents.
30 day Waiting Period
Expect a standard 30-day waiting period for new policies, which means they must be purchased well before any flood warnings sound.
Flood Insurance: is it for me?
Next to fire, flooding is the most widespread natural disaster. Could a flood ruin you? That’s the $250,000 question to answer when deciding whether you need flood insurance. Be sure to speak with Stonebrook Insurance & one our highly trained associates will patiently & professionally help you determine if Flood Coverage is for you.
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