Mother Nature can be a harsh mistress. Without much warning we can be affected by storms, hurricanes and flash flooding. While your Homeowner’s Insurance policy will provide protection for most weather related damages, there are exclusions for certain water perils. A common exclusion for all Homeowner’s Insurance policies is the peril of flood. The National Flood Insurance Program (NFIP) defines flooding as a temporary, partial or complete inundation of land that is normally dry which covers two or more acres or two or more adjacent properties. Simply put, the main difference between a flood claim and a water damage claim is that the water comes from a natural source and two or more properties are involved.
A survey conducted by the Insurance Institute of America showed that only 12% of Americans have flood insurance and the majority of Americans believe that flood Insurance is covered by their homeowners’ policy. Most are surprised to learn that it is not and without purchasing a specific flood insurance policy a storm can leave your home with devastating damages, like those we saw in Houston, which you may have to fix yourself.
How are Flood Insurance Polices rated?
FEMA created a flood insurance rate map as an official guide for homeowners to determine if their home is in a more or less preferable rating class and whether or not the homeowners will be able to take advantage of more competitive pricing because the property based on how likely it is for their property to be flooded.
What is covered by Flood Insurance?
A flood Insurance policy will provide protection for both your dwelling and your contents up to the limit stated on the policy. Typically the highest limit of coverage that can be purchased is $250,000 for your dwelling and $100,000 for any personal property. Higher limits of coverage can be purchased through surplus or excess lines. All claims will be subjected to a deductible. Different deductible amounts can be chosen at the homeowner’s discretion.
Contact your local FBinsure agency for additional information and quotes on flood insurance for your home. For more information on preparing for a flood, you can click the image here for our flood preparation info sheet