What to Know about Flood Insurance

One of the frightening aspects of a large flood is the speed at which it moves. No matter how well you plan for a disaster, sometimes a flood will deny you the time to put your plans into effect. Even if you live in a low risk flood area you can still be affected by flooding.

National Flood Insurance Program

The NFIP is a great help for many people who live in flood risk areas that have taken advice to limit their losses. Home owner insurance does not cover flood losses and damage caused by floods so this extra cover is important. If you live in a high risk area that does not qualify for the NFIP you might find that you cannot get insurance or the premiums are too high for you to afford.

Private Flood Policies

Flood insurance that you have contracted with a broker is independent of any national schemes or emergency funding and pays out on the insured losses regardless. Good flood insurance will cover eventualities that might not seem important at the time you take it out but be prepared to pay extra for the additional protection.

Insurance Coverage

The basic cover of most flood home insurance is set on a sliding scale according to the property size and the flood risk. A higher risk of flooding carries a higher premium or lower the cover. A basic flooding insurance will only cover certain damage to the property. To cover the contents of the property you need to take out contents insurance with a flooding liability.

Insurance Terms and Conditions

Before buying insurance you need to ensure that you are getting the cover that you think you are paying for. For example, you might think that you are getting cover against a local river flooding your property. If the river floods only your property and does not 2 two acres of your land, you have no coverage.

Basements

No matter what improvements you have made to your basement, basic flood insurance will only cover the basic necessities (the furnace and electrical services). You need separate cover for all improvements and anything that is stored in the basement.

Minor Floods

If you have flooding caused by a leaking water pipe, leaking roof or a window broken in a gale ordinary flood insurance does not cover that. You need proper flood insurance or contents insurance for those eventualities. To qualify as a flood the water must enter your home from outside from an unnatural event. Rain fall is natural but a flood of rainwater flowing into your house along the ground is not.

Loss of Earnings

Flood policies will not cover you for loss of earnings while you try to recover from the damage.

Flood insurance is the starting point for your home protection. If you are at risk of significant loss because of the value of the contents of your home and additional work you have had done below ground level, you need to discuss your needs with a broker to ensure the cover you buy is adequate.