Flood Insurance

Floods are the nation's most common natural disaster.  Surface water that enters your home or other building from the outside is considered flood water.  Flood water includes water that enters your home or building through foundation cracks, doorways, sump drainage areas and sewer back-ups.  Unfortunately flood is an excluded coverage peril on virtually all homeowner's policies and most other property coverage forms.

Most homeowner's policies and other property policies allow you to buy a limited amount of coverage (for an additional premium) in the event your sewer backs up or if your sump pump fails or cannot keep up with incoming water.  For all other scenarios, you need to buy a flood insurance policy to protect your home or other building and your contents.

Flood insurance policies usually have a 30 day waiting period before coverage is activated.  There are limits to how much coverage you can purchase on a flood policy.  You need to purchase a separate limit for building(s) and contents.

The cost of flood insurance depends on the area you live or operate in, as some areas are more prone to flood than others.  It also depends upon the limit of coverage you choose to purchase.

Almost anyone who wants flood insurance can buy flood insurance.  Your mortgage lender may also require flood insurance coverage if you are within a designated flood plain.  But you do not need to live within a flood zone to buy coverage.  20% of all flood claims come from outside high risk flood zones.  Flood insurance can usually be purchased from your home and auto insurance agent.

Steve Richter