The recent devastation wrought by Hurricane Harvey highlighted the need for flood insurance coverage even for locations that are not designated flood zones and are not at high risk for flooding. The damages caused by flooding to the property, home and contents can be extensive and expensive. Most general insurance policies DO NOT cover flood damage. Regular homeowner’s coverage DOES NOT cover flood damages. Flood Insurance does cover damages related to flooding which is why it is a necessary part of your coverage.
Some areas are more high-risk for flooding than other but all properties are exposed to some risk. Rainfall is not the only cause of flooding. It can also be caused by mudflows, rapid snowmelt, ice jams, and storm surges. Urban Development, such as new construction and ground paving, can also be a cause of flooding as the topography is altered by not allowing the land to drain properly.
Flood insurance provides coverage after a flood destroys part or all of a home. Many people wrongly believe that the government covers damages due to flooding. However, Federal assistance is only available if the flooding is formally declared a disaster and often this assistance comes in the forms of loans with interest rates which can takes years to repay, especially if the home still carries a mortgage. Such loans can be costly and can cause real damage to your financial future. Flood Insurance claims are paid out even if no disaster is formally declared and is not a loan that has to be repaid.
Commercial Flood Insurance
There are many types of Flood Insurance coverage available for your personal and commercial buildings. Properties in low-risk areas usually carry low premiums to cover your buildings and contents.
There are two types of commercial building flood insurance coverage:
- Commercial Contents Policies which covers contents your business has including: inventory, merchandise and merchandise (usually up to $500,000).
- Commercial Building Policies which covers your building and contents. This can also cover tenant’s improvements if you do not own your building.
Flood Insurance can also cover debris removal and other parts of the cleanup process.
Flood Insurance Premiums are based on different factors including:
- Building’s age, height and occupancy
- Your location within the building
- Location of the lowest floor in relation to the elevation requirement on the flood map
- The deductible you choose and the building and contents coverage you choose
Personal Flood Insurance
A standard homeowner’s policy DOES NOT cover damages from flooding. A separate flood policy is needed to cover losses. A flood insurance policy can cover:
- Structural damages
- Furnace, water heater and central air-conditioning
- Flood debris clean up
- Electrical and plumbing systems
A renter can also purchase coverage for their belonging located in a building even if the property owner decided not to cover the building.
To purchase flood insurance or for more information contact Fidella Insurance Agency today.
While we cannot control when natural disasters occur, we can prepare for them.
What are some of the Key Financial Lessons we can learn from 2017? Flood Insurance-You Need It!
Prepare your property for a flood to help reduce damage.