Rain, Rain Go Away! Flood Insurance Facts.

2018-08-27
By: Denise Koslowsky

The summer of 2018 is proving to be a very, wet summer. The national rainfall average is higher than normal and when adding in factors such as climate change and an increase in urban development, the risk for flooding increases. It also means that there are potentially millions of Americans who are at risk for flooding and currently have no insurance coverage. In our continuing effort to be sure that we educate each client we serve we would like to share….

Important Flood Insurance Facts Every Homeowner Should Know:

• Floods can happen anywhere.  The prevailing feeling is that flooding happens in coastal areas, and not inland is somewhat of a myth.

• A few inches of water can create tens of thousands of dollars in damage.

• Homeowner policies do not offer protection from flooding. (It may cover water damage due to a sump pump failure or a burst pipe.) Flooding is typically a standard exclusion on all home insurance policies.

• The National Flood Insurance Program (NFIP) is flood coverage that is currently available to almost everyone.

• NFIP has fixed limits on coverage for single-family dwellings that do not offer adequate coverage for many homes.  (Under NFIP the maximum limit for the building structure is $250,000 and $100,000 for its contents).

• NFIP does not cover your finishings, floor coverings, carpets, media systems or contents in your basement if the basement is below grade.
• NFIP has a 30-day waiting period. If you hold off on purchasing coverage until you hear a storm is coming, it will likely be too late so it is best to get coverage in place before flooding becomes a threat.

• Err on the side of being safe. Purchase flood insurance and hope you never need it!

• Advocate Brokerage partners with a handful of high-end carriers that offer their own specialized flood products for existing insurance clients. However, this is based on the flood zone and is not available to everyone

• There is a new flood reform bill currently in the works.  HR 2874 would give consumers more choice when purchasing flood insurance outside of the coverage currently provided by the National Flood Insurance Program. If this bill is passed it will improve the availability, coverage, and cost of flood.  So stay tuned, we’ll keep you posted.

If you have questions about flood insurance in general or how Advocate Brokerage can help enhance your current insurance policies to offer appropriate flood and water damage protection, give us a call. We can help you determine how your property is designated and what that means in terms of the types of coverage that are available and the rates that would apply. We would be happy to come up with a solution that best fits your individual situation and answer any questions to help you make an educated decision.