April Showers Bring: Flood Insurance!
A flooded basement, living room, or garage is a nightmare situation. What’s worse than that? Finding out that your homeowners' policy doesn’t cover flood damage. Uh oh!
Contrary to popular belief, your homeowners' policy does not cover everything. Flood being one. As you’ll learn below, flood coverage is not an endorsement that you can add to your current policy. It is its own policy, one you’ll need to purchase separately to make sure you have the full coverage you need.
While not mandated coverage, in most cases, flood insurance is still important to consider. Many floods occur outside of flood zones, so it’s wise to be prepared—no matter where you live. If you have questions, pick up the phone and call your NOBLE KNIGHTS. It's worth it if your “kingdom” ever ends up taking on water!
First, what is flood insurance?
Flood Insurance is a policy you can purchase to help cover damage to your structure from flooding. Flooding is defined as “two or more acres of normally dry land or two or more properties that experience an overflow or unusual accumulation of surface waters.”
Next, who is eligible to purchase flood insurance?
Anyone! You do not need to live in a flood zone or even be a homeowner. Renters can also purchase flood insurance. If you do happen to live in a flood zone, however, you are required to have this coverage.
Now, let’s look at what flood insurance typically covers:
Structure damage
Personal belongings
Carpet/flooring
Detached structures (up to 10% of your coverage limit)
Appliances
Plumbing/Electrical
What does flood insurance not cover?
Anything basement-related, which is anything that is below ground level. Your policy will typically cover anything in the basement that serves your home, such as HVAC, furnaces, freezers, washers/dryers, water heaters, and heat pumps/sump pumps, as well as structural and foundation damage.
Finished drywall/carpet in your basements and personal belongings. Move those valuable items up higher in your house!
Temporary housing: anytime you must relocate because you cannot live in your primary residence as a result of a covered loss. The policyholder is responsible for paying the temporary housing bill; it is not covered under the policy.
Is there a waiting period?
Yes, there is a 30-day waiting period unless proof of flood insurance is needed at the time of closing on a property. In those situations, the waiting period is waived.
You might still be asking: Doesn’t our property policy cover flood losses?
Nope! Your primary policy does not cover water damage from flooding. You can add endorsements to your policy for other natural disasters such as earthquakes, landslides, or volcanic eruptions. Flood coverages are separate policies and cannot be added as endorsements to an existing property policy.
Cost is often a top concern. So, what can you expect?
Call in and check with our NOBLE KNIGHTS to learn more about the cost of flood insurance and how much coverage you may need!
In addition to purchasing flood insurance, are there other ways to help mitigate flood damage?
Yes!
Purchase flood insurance, of course!
Keep gutters, downspouts, and any drainage free of debris (like leaves).
Move valuable items to higher floors (don’t store them in the basement!).
Install flood vents in the foundation walls or any enclosed areas to allow water to flow out.
Waterproof your basements.
Install a sump pump and water alarm (with a battery-operated backup pump).
While we hope you never have to experience the damaging effects of floods, we want you to feel reassured knowing you have coverage options. Our team is here to help keep your kingdoms safe. To learn more, give us a call, visit us online, or check out our Client Portal. There’s better coverage behind our shield!