Why You Need Flood Insurance Coverage
If you live in an area that sees severe weather from time to time, you need good flood insurance coverage. Many people
make the mistake of believing their homeowner's insurance is all they need to be safe, but this simply isn't true. This is because
much of the damage caused by storms is technically the result of flooding. Flooding isn't covered by typical homeowner's insurance policies.
Let's take a look at what kind of flood coverage you need and what kind of rates you can expect.
First, let's establish what homeowner's insurance does cover. Basically, you're protected in the event of fire, theft, vandalism, and rain that enters through damaged windows and roofs. No, that's not the same as flood damage. Flood damage is defined
as destruction from water that starts at the ground and seeps upward. Rain, obviously, comes from the other direction.
So, what do you need to do to be protected from storms? You should look into a separate flood-insurance policy (remember, you have to
have signed up for this at least 30 days prior to the disaster... you can't buy insurance retroactively).
Flood insurance can be purchased through FEMA's National Flood Insurance Program
(NFIP). A typical policy caps at $250,000 for the physical structure and an additional $100,000 to cover possessions. A typical deductible is $500.
In order to get coverage, you do need to live in a community that participates in the NFIP. To see if you're covered, call 888-379-9531. If you're not eligible (or you want more than $350,000 worth of coverage), you
can sign up for coverage from Chubb or Lloyd's of London, though those entities are more expensive.
Source: Sept 2006 issue of Home Magazine