Quick question: How much coverage for flooding do you have in your Homeowner’s policy? Is it a percentage of your fire coverage? Is it a flat amount? Can’t remember? Well, unless you have a special Homeowner’s policy, the answer is none, zero, zilch, nadda. Surprised? You are not alone. Many unfortunate policyholders in Cenla found out the hard way that they were not covered for flooding after Gustav passed through in 2008.
If you want flood coverage, you have to specifically purchase a flood policy. Because the risk of loss is so great, not many insurers are willing to provide coverage, prompting the formation of the National Flood Insurance Program (NFIP). NFIP stands behind the policies an insurance company writes and is responsible for the underwriting losses.
If the home you own is not located in an “at risk” zone, chances are your mortgage company didn’t require you to purchase flood coverage; so, like many of us, you did not. It is time to reconsider that decision. Just because you were not located in a “flood zone” when you purchased your home, does not mean you are safe from a loss from rising water. Property development could impede water runoff, or what if the drainage system became clogged?
The good news is, if you are not located in a high risk zone, coverage is relatively inexpensive. You can purchase up to $250,000 for your home, $100,000 for contents and $500,000 for commercial property and $500,000 for its contents. Do you know someone that suffered a loss from flooding? Speak to them about flood insurance and do it soon. It’s June and Hurricane season has officially begun.
Something else you need to know—there is a thirty day waiting period before your policy takes effect, so be sure to plan ahead!