A Homeowner’s Policy Doesn’t Cover Flood Loss
“Your homeowner’s policy does NOT cover loss due to flood from any source.”
Many people aren’t aware that their homeowners insurance excludes flood and earthquake coverage. Earthquake coverage can typically be added with a simple endorsement, but flood insurance requires a separate policy entirely.
The Definition of a Flood
Before purchasing a flood insurance policy, it’s important to understand what is considered a flood.
A flood is “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area, or of two or more properties (at least one of which is the policyholder's property).”1
Flood insurance kicks in when the following conditions are met:
- Overflow of inland or tidal waters
- Unusual and rapid accumulation or runoff of surface waters from any source
- Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above
When to Purchase Flood Insurance
We realize that not everyone feels the need to carry flood or earthquake insurance, but we do want you to be well informed.
We can’t predict when that 100-year storm will hit, but we can provide clients with the accurate information they need to make the best decision for their family.
You’ve discovered your flood zone, now what?
Go online and search your zone in your favorite search engine. Let’s say your flood zone is Zone X. These are areas determined to fall between the 100-year and 500-year floodplain and are areas of moderate or minimal hazard from flood.
The Cost of Flood Insurance
On average a low risk flood zone might cost $400-$500 a year to insure and is a small price to pay for peace of mind. Flooding can occur at any time and isn’t always from a tidal surge and more often than not low risk areas may be affected when catastrophic storm hits.
If you are interested in discussing if flood insurance is right for you or you need help in securing a quote, please give us a call at 804.320.0129.