Flood Damage is More Common Than You Think

Flood insurance is not just for homes on the coast. According to the National Flood Insurance Program, 31 percent of the properties damaged by floods are located outside of a special flood hazard area designed by FEMA.

Floods also occur in all 50 states and are the second most common cause of property damage behind the fire. Floods often result from torrential rainstorms and hurricanes. Flood can also result from melting snow.

Protecting Your Property

• If you are moving into a new home, apartment or business location, make sure you have adequate insurance coverage. Your bank, local officials or an insurance representative can inform you if your location is at risk of flooding.
• Flood insurance is excluded under homeowners and renters policies, but it is covered under the comprehensive section of standard automobile insurance policies and some coverage is available for floods under special commercial insurance policies.
• Flood insurance covers direct physical losses from floods and losses resulting from flood-related erosion. This damage can be caused by waves or currents of water exceeding anticipated cyclical levels and accompanied by a severe storm, flash flood, abnormal tide surge or a similar situation which results in flooding. Flood insurance also may cover mudslides.
• Coverage for the structure and contents of the home are sold separately. Buildings are covered for replacement cost but contents coverage is available on an actual cash value basis only.

Flood insurance for homeowners, renters and businesses is administered through the federal government and can be purchased from Reno Insurance Agency under contract with the Federal Insurance Administration (FIA), part of the Federal Emergency Management Agency (FEMA).

Do I Need Flood Insurance?

If you live in a 100-year floodplain and have a mortgage, you don’t have to wonder if you need flood insurance, it is required as a condition of your loan.

If flood insurance is not required as a condition of your mortgage, you’re not obligated to carry it. However, there are a few things that you should know:

• Flooding can happen anywhere and anytime.
• Even a minimal amount of flooding can have disastrous financial consequences. According to the National Flood Insurance Program, one foot of water can cause $27,150 of damage to a 1,000-square-foot home, and the average flood claim is more than $38,000.
• If you think a regular home hazard insurance policy covers losses caused by a flood or heavy rains, think again. You need a separate flood insurance policy to cover flood damage caused by a storm, hurricane, heavy rain or ineffective levee.
• No matter how well you plan for a flood, the costs may be more than you anticipate. If you are not on a solid financial footing with money set aside for emergencies, it may be better to get coverage. Flood policies in moderate to low-risk areas could cost less than your monthly cellphone bill, and could save you a bundle if your home sustains damage.

For more information about your flood risk and the potential cost of a flood to your home, go to https://www.floodsmart.gov/floodsmart/. Then call Reno Insurance Agency and we will make sure that your home is protected.

Flood Myth: If my property is hit by a flood, disaster assistance will bail me out.

Truth: Maybe, if the President declares it a disaster, which doesn't always happen. But even if it does, federal assistance is usually a loan that you must pay back in addition to your existing mortgage.

Call today at 937-388-8043 for a quote on Flood Insurance.