Flood Insurance

Floods can happen anywhere and it can be a serious threat to properties.  Even a few inches of water can cause major damage and require costly repairs or replacement of affected properties. Most residential property policies do not cover damage caused by a flood. To protect your home from this type of loss, you need to buy flood coverage. If you live in a special flood hazard area, your mortgage company will require this type of coverage for your home.

What Is Flood Insurance?

Flood insurance is a type of property insurance that covers a dwelling for losses sustained by water damage specifically due to flooding caused by heavy or prolonged rain, melting snow, coastal storm surges, blocked storm drainage systems, or levee dam failure. In many places, a flood is considered a vis major event, and the damage or destruction it causes are uncovered if you do not get supplemental insurance.

A flood insurance policy is different than the basic hazard insurance coverage contained in a homeowners insurance policy. Standard homeowners insurance covers interior water damage, due, say, to a burst pipe, or weather events like tornadoes and rainstorms. However, it generally doesn’t cover destruction or damage caused by floodwaters. Property owners who live in an area prone to this sort of natural disaster usually need to get special coverage.

What does Flood Insurance Cover?

A flood insurance policy covers two types of property: the structure of your home and the contents. This distinction is made because each type has its own deductible and limit. Note that flood insurance policies do not cover the land your home sits on.

The coverage for the structure of your home typically includes:

• Foundation
• Electrical and plumbing
• Central air systems and furnace
• Water heaters
• Refrigerators, cooking stoves and built-in appliances
• Permanently installed carpeting over an unfinished floor

Contents inside your home that can be protected by a flood insurance policy include:

• Clothing
• Furniture
• Electronics
• Portable microwaves and portable air conditioners
• Dishwashers
• Washers and dryers

If you purchase a flood insurance policy, make sure you look closely at the individual categories of the contents in your home. It’s crucial to be aware of the estimated value of each category and how your coverage limits compare to those amounts. Certain categories might have limits well below the total value of the possessions you own that qualify.

What’s Not Covered by Flood Insurance?

Equally important is knowing what’s not covered by flood insurance. Here are a few examples of the types of property and expenses that fall outside the scope of a basic flood insurance policy:

• Moisture or mold/mildew damage that “could have been avoided by the homeowner”
• Currency, precious metals and paper valuables, like stock certificates
• Outdoor property such as decks, fences, patios, landscaping, wells and septic systems, and hot tubs and pools
• Living expenses, like temporary housing (if flood damage deems your home uninhabitable).
• Cars and other self-propelled vehicles (but your auto insurance may offer some protectionfor your car if you have comprehensive coverage).

Talk to an agent to help make sure you’re clear about the coverage details, exclusions and limitations of a flood insurance policy and to help you make the right choices for your situation.

Of course, you should also remember that a flood isn’t the only potential source of water damage to a home. That’s why, in addition to understanding the potential benefits of flood insurance, you should also review the coverages offered by your homeowners insurance policy.

Be aware on the right insurance coverages that are right for you. Through this, you’ll definitely protect your properties against loss and damages

ONYX Insurance Brokers provides flood insurance to property owners, renters and businesses, and having this coverage helps them recover faster when floodwaters recede. Should you consider getting flood insurance, contact or email us now!

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