Hurricane Harvey Reminds Us Why Flood Insurance Is Important

A Flood Insurance Update

Our thoughts and prayers are with the people of Texas and the city of Houston. The flood damage loss will likely reach over $50 billion.  It may take years of recovery efforts to get life back to normal. This event is a good reminder how important flood insurance can be.

A homeowner’s insurance policy will cover a number of specific perils, but a standard policy will not provide coverage for flood damage.  It may provide some coverage for rain or wind, but flooding from overflowing rivers and streets will not be covered.  Once a flood occurs, coverage cannot be secured as there is usually a 30 days waiting period from the date of application.

FEMA tells us that only about 20% of the homes and businesses damaged because of Harvey will have flood coverage.  According to FEMA, the average flood claim for the years 2008 to 2012 was $42,000.  In 2012, the average flood insurance policy cost only $650 per year.  In 2014, average claims paid ranged from a low of $10,476 to a high of $42,275.

What Flood Insurance Does Not Cover

As with all insurance, there are certain things flood insurance does not cover. These include broken pipes, water damaged from sewer back-up, broken toilets, and landscaping run off.

How to obtain Flood Insurance

Call our office and we can provide you with a free quote.  Remember, your homeowner’s policy does not cover flood.

When disaster strikes, flood insurance policyholder claims are paid even if a disaster is not federally declared. Flood insurance means you will be reimbursed for all your covered losses, and unlike Federal aid, it never has to be repaid.

In general, a policy does not take effect until 30 days after you purchase flood insurance.  Therefore, if the weather forecast announces a flood alert for your area and you go to purchase coverage, it is already too late.  You will not be insured if you buy a policy a few days before a flood.

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