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Saturday, August 9, 2014

Why everyone should worry about flood damage and how to make sure your insurance should cover it

Flood insurance tips
Homeowners insurance does not necessarily cover flood damage
By Oscar King

No one wishes for or even wants to ever experience flooding, but it still happens. When hurricane Sandy hit New York and the east coast, lots of people could not believe the flooding that happened. That was a clear reminder to the fact that it can happen at any time.

So everyone should worry because they are at risk, even in low-risk areas. Sure, low-risk areas can get by without anything happening for one, two, maybe even five years. However, when it happens, you do not want to be caught unawares. Even if your home, business or property is not flooded, chances are that you may have to drive through flooded streets to get to wherever it is you are going. So, somehow it is going to affect you. 

So what can you do to stay protected?

First, if you live in a storm of flood prone area, then you already know what steps you need to take to keep your properties safe. If you do not live in a flood prone zone or the low-risk zones, you may want to consider seriously making arrangements to prevent maximum property loss and damage and protect yourself and your loved ones from becoming casualties. Most times, flash floods hardly give any warning and for the unprepared, this can be quite fatal.

Do you have flood damage insurance?

Most people do not think about this. In fact, it is widely thought that the house or property insurance covers everything including flood damage. Let's quickly address this:

Does my home insurance plan cover flood damages?

Many homeowners learn that their home insurance coverage does not extend to flood damage. Unfortunately, most people assume that flood protection is under their home insurance coverage. This is not true at all.

If you live anywhere near the coast or a body of water, you may want to take out a separate flood damage and protection insurance. Moreover, if you live in an area with frequent flooding, storms or hurricanes, you need to be sure that you are covered, and the best way to do that would be through getting a separate insurance for flooding.

What will your flood insurance cover?

If you are thinking of buying your flood insurance, talk to your insurance broker who will get it for you from the National Flood Insurance Program (NFIP). Please note that this flood insurance is not directly offered by your insurance company. It is offered by the Federal Emergency Management Agency (FEMA).

So, it is a government initiative to help people get back on their feet in the event of any flood damage to their properties cars and person. Also, you can get flood insurance from designated private insurance firms. These firms have direct links with the NIFP. If you live in flood prone areas, you probably are a member of the communities that have passed flood laws that will help mitigate and further prevent the flooding from getting worse. People in these areas are entitled to lower premium payments and the federal emergency loan scheme.  

Your flood insurance policy will cover property damage up to the tune of $250,000. For the content in the house, you will be covered up to the tune $100,000. Please note that you may have to get them separately –which means that you’ll have to pay separate premiums for them even if they bundled up as one. This will cost about $600 a year or $50 a month.

Please note that your flood insurance coverage covers actual flood incident caused by the weather, natural disasters, hurricanes and storms. Essentially, you are talking about flooding from outside the property.  The policy will not cover those caused by burst pipes and anything that’s generated from within the property.

About the author: When not writing to supplement his income, Oscar King works as an insurance adjuster in Florida. All too often he has had to cut checks for less than what the damage actually was because flood damage wasn't covered under a person's policy. To make sure this doesn't happen to you, he recommends paying a visit to http://insuranceland.org/. You can learn more about Oscar by visiting his Google+.
Image license: US-PD