It’s at this time of year that many of us look forward to spring, and everything that comes along with it. The thaw, warmer weather, longer days, and April showers. However, one has to remember that with the melting snow and rainstorms, come the risk of floods.
Though you might typically think that spring flooding only happens near lakes and rivers, this is not necessarily the case. Flooding can also happen far from lakes and rivers, if heavy rains come before the ground has thawed out enough to absorb the excess water. It can also happen in the summer if it rains hard after a long dry spell, and the ground is too hard to absorb any moisture.
The problem comes when the water rises to the point where it finds its way to your basement walls. Once it has reached your foundation, water can find its way through cracks, crevices, and holes; and into your home, more specifically, into your basement. Should that happen to you, wouldn’t you want to know that you’re covered for flood damage?
Unfortunately, many people don’t understand that standard, or even premium homeowners’ insurance policies won’t cover flood damage. A flood insurance policy must be purchased separately in order to cover your home for losses due to flood. And while flood insurance is a requirement if your home is located in a high-risk flood area and your mortgage originates from federally regulated or insured lenders, it’s also a very good idea for most every homeowner or business owner.
What Flood Insurance Does & Doesn’t Cover
It’s important to note that flood insurance doesn’t cover every type of loss that you might experience due to a flood. For example, if your grass, trees, landscaping, and other parts of your yard are damaged, flood insurance won’t be there to help you. However, flood insurance does protect the structures on your property including their foundation, floors and walls, electrical and plumbing, as well as heating and cooling units. Flood insurance also covers and the contents inside your home such as appliances, clothing, electronics, furniture, and more.
Keep in mind however that there are still further limitations to the contents that are covered. A good example is your automobiles and boats. They would not be covered and should be covered by separate watercraft and auto insurance policies.
Where to Buy Flood Insurance
Flood insurance can be purchased from most local insurance agencies including the Homewood Agency. It is made available through the National Flood Insurance Program (NFIP) and is administered by the Federal Emergency Management Agency (FEMA). Because this is a government program, insurance rates are set nationally, so it doesn’t make sense to try to shop around from agent to agent for a better deal. The only discounts that are available are for homes that are located in cities that participate in the Community Rating System (CRS). This program recognizes communities that exceed federal floodplain management practice requirements.
Flood insurance rates vary based on location and by a variety of other factors. This could include but is not limited to the structure’s construction date, type of property, and level of risk for flooding. When you choose your flood insurance policy, you might have a choice in reimbursement methods. These will either be Replacement Cost Value (RCV) and Actual Cash Value (ACV). There’s usually a 30-day waiting period before your policy goes into effect, but there are some exceptions for certain situations. Additionally, it’s important to note that payment for your policy must be made for the full year’s premium.
Are You Covered?
As the examples stated earlier, your home doesn’t have to be located near water to be at risk for a flooding disaster. Floods happen at unexpected times in unexpected places. Could you survive the financial hardship of recovering from a flood? Regardless of whether it’s required or not, it may be something you should have just in case you are the next person to be surprised by rising water levels.
