Do you need flood insurance? You should decide based on where you live, if you are in danger of flooding, and how the cost of insurance compares to the cost of your property.
Consider that flood damage often lasts after the actual flood has subsided. This can look like compromised structural support, permanently damaged furniture, and mold growth.
Consider that if your home was destroyed by an ocean storm surge, an insurance company might consider the cause of the destruction to be a “flood,” leaving you uninsured and homeless.
Consider that rising temperatures can cause ocean levels to rise and erratic weather patterns to emerge. According to many climatologists, this may cause storms of greater intensity around the world in the coming years.
Only you can decide whether to buy flood insurance. If you live in a flood prone area, you may want to request a quote online or over the phone. An insurance quote is free, so there’s nothing to lose by asking. You may be pleasantly surprised with the deals you find.
What flood damage will normal insurance policies cover?
Your insurance policy may cover storm damage and not specify what type of storm damage, so you may be able to fix water and wind damage in one insurance payment. However, this is generally not the case, as insurance professionals will want to pay you as little as possible. More commonly, you won’t be able to repair wind-related damage because it happened at the same time and in the same place as the flood damage.
If flooding causes your electrical power to short out, you may be able to receive compensation for spoiled food and damaged appliances. However, this only applies to hurricane-related electrical damage. If heavy rain or a flooding river causes the electricity to go out of control, you probably won’t receive compensation.
Condo owners and apartment renters can repair common areas if the owner or condo cooperative has a flood insurance policy on the building. However, unless each individual dwelling unit has flood insurance, water damage will not be covered for your own dwelling space.
Finally, if the flood makes your home uninhabitable, your standard policy may cover additional living expenses. These expenses include those that go beyond supporting displacement and finding temporary shelter. The amount of money provided for additional living expenses is usually 20% of your insurance policy.
What does flood insurance cover?
A flood is defined by the National Flood Insurance Program as a partial or total inundation of normally dry land due to overflow of inland waters, rapid accumulation of surface water from any source, or mudflows. This type of insurance covers:
* Any structural damage due to flooding
* Damage to or resulting from electrical and plumbing systems after a flood
* Damage to appliances, heating and cooling equipment.
* Damage to wood paneling, cabinets and furniture
* Carpet damage and repair
* Damage to personal items such as jewelry and electronics.
* Unavoidable mold or mildew damage as a result of a flood
* Removal of debris
* All damage to detached garages
What does flood insurance not cover?
Even a comprehensive insurance policy may not provide complete coverage for all financial losses due to flooding. These common requests are usually denied by insurance providers:
* Financial losses caused by loss of use of the property, for example, a flooded home office
* Land outside the insured building, eg. trees, patios, septic tanks, gardens, swimming pools, etc.
* Fungus and mold damage due to flooding that the property owner could have prevented
Ultimately, it’s up to you to get flood insurance.
