Flood insurance, even in a non-flood zone? Sure

Record-breaking floods have come after one of the most devastating hurricanes the US has come to know. In the southeastern areas of the lone star state, the majority of homeowners don’t even have flood insurance. And who can blame them? There was never a precedent in place. While hail and wind storms are a constant concern for property and business owners, no one could have imagined that rainwater would contribute to the massive damage suffered and broadcast across the country in recent days. Certainly not the mortgage lenders, because they do not even demand it from borrowers!

But with the toll on the dead and those forced to leave their homes to seek shelter, one thing remains clear. When things finally settle down, homeowners and those in the commercial sector will have to deal with the epic losses and damages alone due to a lack of related coverage.

For homeowners without flood coverage, the facts are inconvenient because they are painful: Standard home insurance does not protect against flooding and associated damage. The insurance industry stresses in no uncertain terms that compensation is only granted to those who were prescient to purchase flood insurance in the event of water damage due to atmospheric conditions such as a hurricane, tropical storm, or other inclement weather.

A little history about flood insurance:

It was 1968 when the United States Congress mapped out its flood program. Designed to help home and business owners with the financial devastation of a damaging flood, the policy is offered in all communities involved in the rules of participation.

Flood cover protects property owners or tenants from damage to buildings and contents.

This includes the following:

• The structure, as well as the foundation of the building

• Electrical and plumbing systems

• Central air conditioning, oven, boiler

• Refrigerator, cookers and all installed appliances, such as a dishwasher

• Carpet laid over a bare floor

• Personal clothing and electronics

• Curtains

• Portable heaters and air conditioners

• Floor covering other than what is included in the property cover

• Washing machines and dryers

Typically, flood damage claims include:

• Replacement cost value: up to eighty percent of the amount needed to replace material damage in a single-family home, primary residence

and

• Actual cost – replacement cost at the time of loss less physical depreciation

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Note: The flood program always uses the actual cost to determine the reimbursement of personal property.