Many cities and towns have been built near waterways for easy access to fresh water and transportation (or the beach!) Unfortunately, these areas are often located in flood plains.
If you live near a flood plain, you’ll want to make sure you have flood insurance.
It’s not part of your homeowners policy
Most homeowners policies don’t cover flooding, so a separate policy will be needed. Flooding is the most common natural disaster in the United States; however, floods aren’t always caused by natural disasters. Heavy rain, snow thaw, and poor drainage are also major contributors to flooding.
It may be required
If you have a home mortgage from a federally regulated or insured lender, which is likely, you will be legally required to carry flood insurance on your property. This will certainly be the case if you live in a flood plain.
The National Flood Insurance Program
In certain areas, the risk of flood, and major claims, may be too high for insurance companies. For this reason the government established the National Flood Insurance Program (NFIP). If your property is located in an area that is prone to flooding, you may qualify for the NFIP. The Flood Insurance Rate Map looks at the flood history of every area for the past 100 years to determine whether or not a property is eligible.
Know what’s covered
If you have a flood insurance policy it probably won’t protect you against all damage caused by water, like damage caused by mold, mildew, or moisture that could have been prevented. For example, if your home floods and you don’t take the necessary steps to quickly dry it out, your claim for mildew or mold damages could be denied.
Being the lowest part of your home, basements are the most prone to flooding. Coverage for basements is limited, even under the NFIP. Personal belongings, ceilings, walls, and floors typically won’t be covered under most policies. Property like circuit breakers and furnaces, however, will be.
Flood policies also won’t cover damage caused by drain or sewer backups. This coverage would require additional endorsements.
To research the best flood insurance options for you, talk to the insurance experts at John B. Wright Insurance.
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