Do I Need Flood Insurance? Short Answer – YES!
There’s water pouring in from somewhere in your home! Before you call your insurance company to file a flood claim it’s crucial to know where it came from and how it got into your home or business.
Flood, A Definition
When it comes to insurance the definition of flooding is important. Flooding is “an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties.” It occurs when water outside the home flows across the top of the ground and into the home through an opening such as a door or window. Water coming from below the surface of the ground into your home is considered a backup or seepage. This is typically caused by heavy rains and the backup of storm drains or sewers and enters the home through plumbing entry points such as sinks, toilets, and bathtubs.
It all comes down to how the water entered your home. Hopefully, you will never have to worry about these major types of water issues at your home or business, but if you do it’s important to be specific when dealing with your insurance company. The last thing you want is to be told you don’t have coverage for the water damage because you didn’t classify the type of flooding correctly.
Do You Need Flood Insurance?
Insurance that covers flooding is not a guarantee. It’s important to check with your insurance carrier on what is covered. While regular homeowners insurance may cover water damage in certain circumstances such as an appliance failure or a pipe bursting, it typically does not cover actual flooding and you may need a separate flood policy.
Certain types of federally backed mortgages, or living in flood-prone areas will require you to purchase coverage through the National Flood Insurance Program. Flood insurance covers the structure for the building’s replacement cost, but coverage for personal property is a separate policy based on actual cash value. The maximum flood insurance coverage amount is $250,000 for the structure of the home and $100,000 for the contents of the home.
Ninety percent of all-natural disasters in the United States involve flooding so even if it’s not required by your lender it is definitely something to consider. Just one inch of water in a home can cost more than $25,000 in damage. Without proper coverage, you will be stuck paying out of pocket.
FloodCo USA is here for you when flooding or water damage strikes. Our team is experienced with handling all aspects of insurance claims and will take care of 99% of the tasks that are required when dealing with your insurance company. Contact us today to see how we can help solve your water damage problems!