Here’s our April 2018 Client Newsletter.
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Flood Insurance…Are YOU Covered?
Believe it or not, everyone lives in a potential flood zone. You don’t have to be near a river, lake or ocean to be flooded. Floods can be caused by storms, melting snow, hurricanes, water backup due to inadequate or overloaded storm drains, as well as broken water mains.
For the purposes of insurance, the term “flood” means:
• “A general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land area or of 2 or more properties (at least 1 of which is the policyholder’s property) from: overflow of inland or tidal waters; or unusual and rapid accumulation or runoff of surface waters from any source; or mudflow; or
• Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.” (source FEMA National Flood Insurance Program)
You may be surprised to find out that flood damage is not covered by most homeowners’ insurance policies. Sadly, this can lead to devastating losses, both financial and emotional.
You should consider protecting your home, business, and belongings with flood insurance from the National Flood Insurance Program (NFIP) whether your flood risk is high or low. With very few exceptions, anyone in a community that participates in the NFIP can buy building and/or contents coverage.
It is a good idea to buy even in lower risk areas because 25 to 30 percent of flood insurance claims occur in low and moderate risk areas.
Flood insurance is very affordable. The lowcost Preferred Risk Policy is ideal for homes and businesses in low-to-moderate-risk areas. Homeowners can insure buildings and contents for as little as $119 per year and renters can insure contents for as little as $39 per year.
About 90 private insurance companies nationally offer affordable flood insurance backed by the federal government. Policies are available to homeowners, renters, and Flood insurance is easy to get through private insurance companies and independent insurance agents. You can even purchase flood insurance with a credit card.
Contents coverage is separate, so renters can also insure their belongings. Up to $100,000 contents coverage is available for homeowners and renters. If you own your home or business, make sure to ask your insurance agent about contents coverage. It is not included with the building coverage.
There is usually a 30-day waiting period before coverage goes into effect. Plan ahead so you are not caught without insurance if a flood threatens your home or business.
But doesn’t the federal government help people who have suffered a flood? Federal disaster assistance is only available if the President declares a disaster. And in many cases, the assistance is a loan that must be paid back with interest. Flood insurance pays even if a disaster is not declared. And of course, you never have to pay it back.
Unfortunately, the possibility of flooding is an unpredictable fact of life for property owners. Dealing with the aftermath of even a small flood can be overwhelming.
We hope you never have to go through flooding in your home. But if you do, call Professional Carpet Systems as quickly as possible. We will work directly with your insurance provider to help minimize the damage and restore your home.