Flood Insurance

Most people don't really understand Flood Insurance. They think that their Homeowner's Insurance Policy will cover them if there was water damage, to their property. In a case of a burst pipe, or water damage due to Wind tearing off a roof and water coming into their home, coverage may be afforded under their Homeowner's Insurance Policy. Hazard policies do not cover damage due to rising water.

Most Flood Insurance is written for homes as a part of the National Flood Insurance Program. This agency is administered and regulated by the Federal Emergency Mangement Agency (FEMA). Flood Insurance is sold through Insurance Agencies, but it is not uncommon, for the private insurer whose name appears on the policy, and from whom the insured purchased the insurance, to have nothing to do with the policy or claims handling. Benefits paid by the private insurance companies on flood claims under the flood policy are reimbursed by FEMA, from the U.S. Treasury.

Flood policies generally cover damage to real and personal property arising from flood water. Coverage generally includes repair and replacement of damaged property, clean up and remediation of any resulting mold, mildew or fungus.

You should make an informed decision about whether or not to buy Flood Insurance. In most cases, if you are in a flood prone area, and you have a lienholder, they will force you to buy Flood Insurance to protect their financial interest in the property. You should check in locally available flood zone maps, to see if you are in a flood prone area. If you call a reputable insurance agent that understands and writes flood insurance, they should, in most cases run a Flood Zone Determination for you, right away.
Never assume that that your home is not at risk for flood damage, just because you aren't legally required to buy it, or because you are not in a flood prone area. Acording to FEMA, 25% of all claims, come in from "non flood prone areas".
If you happen to be in an area that is not designated as a Flood Zone, the price of the coverage goes down with the lower risk.

If you decide to buy flood insurance, you should make sure that you are buying adequate coverage. The coverage amounts are usually for a fixed dollar amount for the dwelling and the contenst coverage. Your coverage should be sufficient to replace your dwelling and contents. Your insurance agent should help you determine that.
If you currently have flood insurance coverage, make sure that you have adjusted your coverage upward to stay in step with the rising costs of replacing your property.

For more information visit www.fema.gov