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Do You Need Flood Insurance? By Floyd Arthur

The West Coast of the United States is bracing for a wet winter, as scientists issue dire warnings that “the strongest El Nino in recorded history” has taken up residence in the Pacific, bringing with it the threat of heavy rains and floods. Already this December, Portland, Oregon experienced its wettest day ever as a monster storm dumped 4.75 inches of rain on the region between Sunday, Dec. 8 and Wednesday Dec. 9, 2015. (The average rainfall in Portland for the month of December is 5.49 inches). Widespread flooding, mud slides and traffic jams crippled the city, and, as of Thursday, an estimated 17,000 residents were still without power.

Do You Need Flood Insurance?

What’s more, meteorologists say the worst may still be to come. Although climatologists agree that no one can predict with certainty how much rain the warm Pacific waters will bring, forecasters are warning West Coast residents to be prepared for higher than average rainfall and potentially devastating floods.

Why Get Flood Insurance?

Floods are a natural phenomenon that can occur anywhere in the United States. Defined generally as an event where a normally dry area is inundated with water or mudflow, floods occur for numerous reasons, including exceptionally heavy rains, tidal surges, snowmelt, failed levees and powerful storms. In drought-stricken areas or those that have been devastated by fire, heavy rains sometimes produce mudflow— a river of mud caused by large amounts of rainfall mixing with dry, unprotected earth.

Floods can be devastating, causing property damage, bodily injury and even loss of life. According to the National Flood Insurance Program, as little as 6 inches of water can cause nearly $40,000 in damage to an average 2,000 square-foot home.

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What Is Flood Insurance?

Because homeowner’s insurance policies specifically exclude damage caused by flood or mudflow, in 1968 Congress established the National Flood Insurance Program to help homeowner’s and businesses protect themselves from financial loss. Administered by the Federal Emergency Management Agency, the National Flood Insurance Program works with private insurance companies to offer flood insurance to homeowners, business owners and renters who live in “participating communities” that enforce FEMA standards to reduce flood risk.

Rates are set nationally and are determined by many factors, including the location, size and age of the property to be insured. Additionally, communities that participate in voluntary flood-risk management strategies that exceed FEMA’s minimal requirements are eligible for reduced rates based on the NFIP Community Rating System. Under this system, high-ranking communities can receive a rate reduction of up to 45 percent.

As part of the NFIP, buildings with mortgages from federally regulated or insured lenders that are located in high-risk flood zones must have flood insurance. High-risk zones are defined as those that have a 25 percent chance of being damaged by flood during a 30-year mortgage. However, many floods occur in moderate or low-risk zones.

What Does Flood Insurance Cover?

Generally, flood insurance covers an insured building and all building contents, including:

The building and foundation Electrical and plumbing systems Furnaces, central air conditioning and water heaters Refrigerators, stoves and built-in appliances such as dishwashers and microwaves. Carpeting, paneling, wallboard, and built-in fixtures such as cabinets and bookcases Window blinds Detached garages

Personal property is also covered by flood insurance, including such items as:

Clothing, furniture and electronics Portable appliances, such as air conditioners, microwaves and portable dishwashers Washers and dryers Freezers (plus the cost of any spoiled food) Artwork and other valuables (up to $2,500)

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The cost of clean-up and debris removal is included as well.

What Does Flood Insurance Exclude?

Flood insurance provides limited coverage for enclosed areas below ground level, including basements, crawl spaces and other areas below an enclosed building. Additionally, coverage is excluded for:

Damage caused by moisture, mildew or mold that the property owner could have avoided Valuable papers such as stock certificates, currency and coins Temporary housing and other living expenses Financial losses due to business interruption or loss of use of the insured property Damage to cars or other motor vehicles Damage to the exterior fixtures of the property, such as swimming pools, trees, shrubs, hot tubs,

patios and retaining walls Water damage due to events other than flooding, such as broken pipes or sewer backup

Even if you don’t live in a high-risk flood zone, powerful storms and other natural perils can put your home or business at risk. In fact, according to the NFIP, 20 percent of claims for flood damage come from property owners in communities where flood risk was low or moderate. So, no matter where you live, it’s a good idea to talk to an experienced agent to discuss whether flood insurance is right for you.

We are available Monday through Friday from 9 a.m. to 6 p.m., so call 516-292-3780 to set up an appointment for your insurance review. Or, if you prefer, request a free consultation online now, and we will get back to you within one business day.

Floyd Arthur Insurance Expert New York

http://floydarthur.info * http://carmoongroup.com * http://floyd-arthur.com