We see the devastation and destruction caused by hurricanes and other storms each year. The amount of water a storm can produce can be significant. If your neighborhood is flooded, it's important to understand what insurance coverage may be available to you.
Here are some questions I always think about when I watch TV coverage of a big storm.
1. Do the cars floating down the street have insurance coverage?
2. How does my insurance policy cover my home for flood damage?
In doing some research, I did confirm that a car floating down the street has coverage if the owner carries “other than collision” or comprehensive insurance coverage on the policy. Some of the kinds of losses covered are:
1. Fire;
2. Theft;
3. Windstorm;
4. Hail, water, or flood; and
5. Vandalism.
As for damage to your home or its contents caused by a flood, there is no coverage under a standard homeowners’ or renters’ insurance policy. So if you live near a body of water or in an area that occasionally floods, you should look into buying flood coverage from the National Flood Insurance Program.
The National Flood Insurance Program (NFIP) was created by Congress in 1968 to help protect property owners from the financial devastation of a flood. Communities participating in this program must follow and enforce ordinances that meet or exceed Federal Emergency Management Agency (FEMA) requirements. To learn more about flood coverage, visit www.floodsmart.gov.
If you would like to learn more about what your insurance policy covers, you can contact your local independent agent.
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This article is intended for general educational and illustrative purposes only and should not be construed to communicate legal or professional advice. Further, this article is not an offer to sell insurance. Please consult with your licensed insurance agent for specific coverage details and your insurance eligibility. All policies are subject to the terms, conditions, limitations, definitions, and exclusions contained therein.
