Most homeowners policies don’t cover flood damage. This type of loss is different from others and it needs special underwriting and rating. Because flood damage is usually more severe and affects more than one home at a time, it’s difficult for the private market to bear that burden.
Sandbags will not protect your home and they will not replace or repair the damage. You need Flood Insurance in addition to homeowners insurance
For that reason, flood coverage is provided by the federal government under a program called NFIP. However, your local independent insurance agent can write the coverage for you, and administration of the policy, including claims paperwork, is usually done by a private carrier. The NFIP collects most of the premium, though, and it’s their checkbook that pays the claims.
If you even suspect you are in a flood plain, ask an independent agent to check it out for you. Foundation washout is a common problem with flooding, so even if you are a condo dweller on the 10th floor you might need the overage. With hurricane Hugo in South Carolina, twenty story high condos came down due to the washout of the foundation, and standard policies didn’t cover the losses.
Technically, all homes are at risk of flood, but obviously the risk is much greater in states like Florida, for example. Some problems that flood insurance covers, like sewer back-up, have nothing to do with the weather.
Don’t take the risk of being without this valuable coverage. Ask your agent today about flood insurance.
“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”
