|
Why should I buy
flood insurance?
Why buy flood
insurance when the federal disaster assistance program will pay
for my damages?
Is
flood damage covered under my homeowner's policy?
My
mortgage lender told me I did not need flood insurance. Is he right?
Will
flood damage be covered under by homeowner's policy if caused by a
hurricane?
According
to my bank, my property is not located in a flood zone. I don't need
to worry about flooding, do I?
Do I need flood
insurance if I live in a non-flood zone?
Is flood coverage guarantee?
What does flood insurance
cover?
How much flood
insurance coverage is available?
Can I get flood
insurance if I'm renting?
Does my flood policy
go into affect the day I purchase it?
How do I file a flood claim?
What can I do to
protect my family pets from flood?
Why should I buy
flood insurance?
Yes -
Floods are one of the most common hazards in the United
States. Your home is more likely to be affected by a flood then
by fire.
Flood insurance is one of the most important things you can do
to protect yourself from financial loss caused by flood.
Why buy
flood insurance when the federal disaster assistance program
will pay for my damages?
If the President formally considers your area a disaster then
you may take out a loan using the federal disaster assistant
program. Federal disaster assistance program is not free and you
will normally be charged interest on the loan amount.
Is flood damage covered
under my homeowner's policy?
No - Flood damage is not covered by your homeowners policy.
My
mortgage lender told me I did not need flood insurance. Is he right?
No - The mortgage lenders usually only require flood insurance when
your property is located in Special Flood Hazard Area that statistically
floods at least 1% of the time, or 26% chance within the term of a
30 year loan. They would have to pay a fine if they failed to require
flood insurance on a loan backed by the federal government. Their
interest is in compliance with federal regulations on lending, not
advising you on preventing the loss of your property. Beyond doing
the bare minimum to qualify for your mortgage, you should consider
the cost of buying insurance, compared to the potential of loss of
your property.
Will flood
damage be covered under by homeowner's policy if caused by a
hurricane?
No - If damage to your home is the result of rising water that
damage will not be covered under your homeowner's policy. Damage
caused by wind would be cover under your homeowner policy.
According
to my bank, my property is not located in a flood zone. I don't need
to worry about flooding, do I?
Your bank is not an authority on flood zones.
While there are some communities that do not participate in the National
Flood Insurance Program, yours probably does. If it does, and flood
insurance is available, there are many designations for "flood
zones", some of which represent low to moderate risk of flooding,
but they are flood zones, none the less. If your property is located
where the potential for flooding is high, your cost of flood insurance
will be higher than the zones classified for a low risk of flooding.
You should find out what the actual zone is for your property location
and what the cost of insurance would be. Then you can fairly weigh
the cost of the insurance to the potential for loss of your property.
Do I need flood
insurance if I live in a non-flood zone?
Yes - Flood can happen anywhere: on coasts, on mountains, along
rivers, in the desert, in towns and cities. Land development can
disrupt the natural runoff path of water and could cause a
normally dry area to flood.
Is flood coverage guarantee?
Yes - The National Flood Insurance Program (NFIP) is managed by
Federal Emergency Management Agency (FEMA) and backed by the
Federal Government.
What does flood insurance
cover?
There are two types of flood insurance you purchase.
Dwelling - Covers structural, mechanical damage, floor surfaces
(tile, carpeting, wood) and flood debris cleanup.
Contents - Covers most of your personal property and belongings
up to a specified limit (clothing, furniture, houseware,
bedding, lamps, decorative items, books, home electronics, area
rugs and draperies, clothes washers and dryers, air
conditioners, food freezers and the food in them)
How much
flood insurance coverage is available?
Flood
coverage limits for a standard flood policy are:
Coverage limit determined by coverage type: either
structure or contents.
|
Coverage Type |
Coverage Limit |
|
One- to Four-family structure |
$ 250,000 |
|
One- to Four-family home contents |
$ 100,000 |
|
Other residential structures |
$ 250,000 |
|
Other residential contents |
$ 100,000 |
|
Business structure |
$ 500,000 |
|
Business contents |
$ 500,000 |
|
Renter contents |
$ 100,000 |
Can I get flood insurance
if I'm renting?
Yes - If you live in a community that participates in the NFIP,
you can get flood insurance to cover contents of your home or
business.
Does my flood policy
go into affect the day I purchase it?
No - There is a 30 day wait period before your policy takes
affect. Therefore, it is important to buy flood insurance before
you think you might need it.
How do I file a flood claim?
To file a flood claim call Service Insurance Company.
What can I do to
protect my family pets from flood?
Red Cross has a lot of info on how to protect your family from
flood.
MedicineNet.com has a good article on Protecting Pets in a
Disaster.
|
