Flood Insurance

Flood insurance protects your home from one of the most destructive natural phenomena: Floods. If you live in a flood zone, why not think about a flood insurance policy now, rather than when the floods are at your doorstep?

Did you know?

Over 50% of flood claims occur in areas considered to have low flood exposure.

Homeowners insurance does not cover flood damage. Flood insurance is a separate policy, which can be purchased for as little as $ 80 a year. Flood insurance, however, can be purchased in conjunction with a homeowners policy and from the same office or agent. It is federally subsidized coverage issued and administered by the Federal Insurance Administration, an arm of the Federal Emergency Management Agency (FEMA).

Just an inch of water can cause costly damage to your property. Flood insurance is protects homes, and commercial structures. Coverage is available for contents as well.

Flash floods often bring walls of water 10 to 20 feet high. Damage from rising or tidal water is specifically excluded from a homeowners policy and must be covered by the flood insurance issued under the National Flood Insurance Program (NFIP).

Types of flood insurance policies

There are 3 standard flood insurance policies for General Property, Dwelling and Condominiums provided by the NFIP. All coverage information required by the policyholders is provided here. Select the one that fits your home and your pocket best:

1. Dwelling can mean single family structures, more than one family structures, or condominiums units. Forms for dwelling insure residential structures and their contents including individual condominiums.
2. The General Property Policy Form insures other residential and commercial structures and their contents. These may include apartment buildings, schools, co operative associations etc. The General Property Policy form provides a maximum coverage up to $250,000 for cooperative associations. The entity owning the cooperative is the insured in this case.
3. The Residential Condominium Building Association Policy Form insures residential condominium building associations and covers the entire building under one policy. However, it does not protect the individual owner from loss to personal property.

How does flood insurance work?

Flood insurance is issued through the National Flood Insurance Program and it has an automatic five-day waiting period.

You can buy flood insurance even if your home has been flooded before. If it is a case of rising water and you find yourself not covered by a federal flood insurance policy, help will still be available if a disaster declaration is issued for your area.

Flood insurance policies on the other hand, can pay claims irrespective of whether a disaster is declared or not. However, note that there is a 30-day waiting period after you have applied and paid the premium before the policy comes into effect.

The policy will not cover a disaster in progress. When you file a flood insurance claim, you can request a partial payment immediately and can start recovering faster. Most importantly, Flood insurance claims are financed by the premiums paid by the policyholders rather than the money given by the taxpayers

What to do when claiming insurance?

1. Start off by itemizing your belongings - Make a detailed list of all that you possess in your home. Describe everything and include serial and model numbers, dates of purchase for beds, wardrobes, dressers, sofas, chairs etc. Also include contents of cupboards, drawers, pictures and plants in your inventory. When floods arrive unannounced a lot is lost before help arrives. If you have videos or photographs of your home or receipts of items, these can substantiate your claim for flood insurance. Store all these lists in a safe place.
2. Notify the insurance agent who sold you the homeowners and the flood insurance policies. Tell them where you can be located especially if you have been forced to move out of your home. Or else, call the NFIP toll-free at 1-800-638-6620 if you bought the flood insurance policy from a different source.
3. Clean up once the floodwaters recede. When it is possible to take stock of the damage, check on the lost or destroyed items in your home. Check the items, which can be repaired. Photograph or videotape the damage. Do not throw anything away without your Adjusters consent.
4. Rising water levels and wind-lashing rains can both cause damage. If it is a case of rising water and you are not covered by a federal flood insurance policy, help will still be available if a disaster declaration is issued for your area. To seek assistance from the federal government, you can call toll-free at 1-800-462-9029.
5. Sit with your adjuster, calculate the value of the items in your list and review the claim. Check on the benefits due to you if you have suffered losses. The adjuster will also help you file a repair estimate for the damage done to your property.
   Many a time, the adjusters can estimate simple losses on the first visit itself. It is important that both you and your adjuster agree on the scope of the damage and what needs to be replaced or mended. get the adjuster to give this in writing if you are not too sure.
6. Once this is done, you can be in charge and claim all that is due to you. In case of major problems, you can always get in touch with your insurance agent or the local company representative as well as the department of insurance, looked after by the state insurance commissioner. They have the policyholder services sections to assist people like you.

So, do you need flood insurance?

Flood insurance is advisable if your home is in an area declared a flood zone under the National Flood Insurance Program.

Insurance agents have the requisite maps and will know whether the property is in a flood zone. Mortgage companies also know and generally ask for proof of flood insurance at the time of closing on the loan.

There is nothing like the best time to buy a flood insurance policy. Be prepared, now.