Brigette Honaker  |  July 18, 2019

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Flood Insurance Overview

Flood insurance is a supplemental home insurance policy that helps compensate owners after a flood damages their property. In most cases, flood coverage is not offered as a part of regular home insurance, meaning that homeowners will most likely need to purchase coverage separately. Insurance agents offer flood insurance through FEMA’s National Flood Insurance Program (NFIP).

The need for flood insurance will depend on where homeowners live. According to FEMA’s Flood Smart program, in areas that are prone to flash floods or that may get hit by hurricanes which in turn cause flooding, flood insurance may be more of a priority. If people in these areas do not get flood insurance, they may be forced to pay thousands of dollars out of pocket to repair their homes.

According to FEMA, floods are the most common and most costly natural disaster in the United States. Flood reportedly cost around $8.2 billion each year. Having only just one inch of water inside of a building can cost about $27,000 to recover from. The larger the flood, the larger the price tag for repairs.

The NFIP provides two types of coverage: building coverage and contents coverage. Building coverage can provide compensation for damage to the following:

  • Electrical and plumbing systems in a house;
  • Furnaces, water heaters, heat pumps, and sump pumps;
  • Appliances such as refrigerators, cooking stoves, and dishwashers;
  • Permanently installed carpeting, paneling, walk board, bookcases, and cabinets.
  • Window blinds;
  • Foundation walls, anchorage systems, and staircases;
  • Detached garage;
  • Cisterns and their stored water, fuel tanks and stored fuel, solar energy equipment, and water well tanks/pumps.

 

Contents coverage is usually an extra cost associated with a flood insurance policy but provides further coverage to the following:

  • Personal belongings (clothing, furniture, electronics);
  • Curtains;
  • Portable and window air conditioners;
  • Carpets not included in building coverage;
  • Laundry washers and dryers;
  • Valuable items (furs, original artwork, etc.); and
  • Food freezers.

 

It is important that homeowners know exactly what is covered under their insurance policy. It is also important that homeowners remember that water damage is only covered by flood insurance if the damage is caused by flooding. Secondary damage caused by landslides, sinkholes, and other flood problems may not be covered by a flood insurance policy.

Denied Flood Insurance Claims

In some cases, flood insurance claims may be denied or underpaid. As outlined above, the coverage provided by flood insurance can be variable. The exact cause of flooding is extremely important and there is a lot of pressure on homeowners to provide as much evidence and documentation as possible.

Flood Insurance Attorneys

A claim may be delayed, denied or underpaid for a variety of reasons but working with a qualified attorney can help homeowners recover the maximum available compensation. Experienced legal professionals know how to work with insurance companies and understand exactly what type of information and documentation is needed for the best possible outcome. Working with a flood insurance attorney can also help consumers with the stress of the claims process as these professionals are paid to help take care of the more difficult aspects.

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