It is that time of year again. As we here in Wisconsin anxiously await warmer temperatures, it also means spring rain storms, causing the potential for flooding. What would you do if water started creeping up over the foundation of your home? Could you afford to pay for the damages? Do you even know how much it could cost? Continue reading to learn how you can protect yourself against the perils of flooding and other types of water damage.
The Cost of Flooding
Flooding is the single biggest natural disaster in the United States every year in terms of cost. That is according to data from the National Flood Insurance Program (NFIP), which reports that the average flood insurance claim topped $43,000 in 2015. It does not take a big flood to do big damage, either. The NFIP provides a tool that helps estimate the cost of flooding in a 1,000 or 2,000 square foot home. According to that tool, it only takes 2 inches of water to cause more than $20,000 in damages.
Are You Covered?
If you are relying on your homeowners insurance to get you through a major flood, you could be in for a major disappointment if you ever try to file a claim. Homeowners insurance does not cover the cost of flood damage. Instead, you must purchase coverage through the National Flood Insurance Program, which is available through an agent here at Homewood Insurance Agency.
The NFIP provides coverage for your home’s structure, as well as the contents inside of it. If you are a renter, talk to us about purchasing contents-only coverage. The price you pay for coverage will be largely dependent upon your risk. The NFIP uses FEMA flood maps to assess your risk. If you live in a low or moderate-risk area, you may qualify for preferred rates. Keep in mind that there is a 30-day waiting period before flood insurance becomes effective.
You may wish to consider flood insurance even if you have no prior history of flooding in your area. It only takes one major flood to wipe away everything you worked hard to build. Furthermore, history is not a complete indicator of risk. Changing weather patterns, a changing climate, and changes in topography and construction developments can all contribute to increased flood risks in areas that are otherwise historically dry.
Other Types of Water Damage
In addition to flooding, you may have other water damage risks lurking in and around your own home. Chances are your homeowners insurance covers many of those risks, but not all of them. In most cases, a standard policy will include coverage for sudden water-related damages that are caused by accidental events, such as rain water coming into your home after wind damages your roof. However, insurers will usually deny any claims for water damage that are caused by poor maintenance of your home. In other words, we would not recommend filing a claim for damages caused by a slow leak that you just never got around to repairing.
Sewer and Water Backup
If you do not have a sewer and water backup endorsement on your homeowners insurance policy, now is the time to consider adding one. If the waste lines flow away from your property suddenly become clogged or damaged, it can cause water and raw sewage to backup into your home. You might have no warning at all until you have a soggy, unsanitary mess to clean up.
Do you have a sewer and water backup endorsement? If not, contact us here at Homewood Insurance Agency for help minimizing your risk.
