It’s been a cold and snowy winter and the spring thaw will soon be upon us. We’ve had record snow accumulation, which could lead to flood issues in the near future. The National Weather Service is also predicting above average rainfall during the months of March through May.
A common question this time of year is whether you need a flood insurance policy? You don’t have to be in a designated flood zone area in order to purchase a flood policy. Water backup is not flood coverage, and flood is not a peril covered under most homeowners’ insurance policies.
Below is information taken from the National Flood Insurance Program’s (NFIP) website which defines flood and also lists the coverage included in a flood policy.
Flood insurance from the National Flood Insurance Program (NFIP) defines flooding as:
- A temporary, partial or complete inundation of land that is normally dry.
- The inundation must cover two or more acres or two or more properties.
- The cause of the inundation must be:
- overflow of inland (river or stream) or tidal waters
- rapid accumulation of water from rain or snowfall, or surface water runoff;
- mudflow / mudslide; or
- subsidence of land along a body of water resulting from erosion or wave action.
The above conditions are what trigger the flood insurance policy coverage.
Here is a snapshot of the building and contents coverage:
RESIDENTIAL BUILDING COVERAGE
Building coverage insures a house or dwelling, attached and detached garages, as well as certain permanently installed fixtures such as built-in dishwashers, permanent shelving and cabinetry, furnaces and radiators, hot-water heaters, plumbing fixtures, stoves, ovens, and refrigerators.
COVERAGE IN BASEMENTS
National Flood Insurance covers structural elements, essential equipment, and other basic items normally located in a basement, such as:
- Unfinished drywall for walls and ceilings, including nonflammable insulation
- Electrical junction and circuit breaker boxes, and required utility connections
- Central air-conditioning units
- Furnaces, hot-water heaters, fuel tanks and the fuel inside them, and heat pumps
- Light fixtures
- Foundation elements
- Cleanup
National Flood Insurance doesn't cover basement improvements such as finished walls, floors or ceilings, or personal belongings that may be kept in a basement, such as furniture and other contents. One other important fact is that from the date you purchase the policy it actually does not become active for 30 days from the application submission date.
So, you can see that coverage is available and it has its limitations but it may be the only source of coverage for flood for most homeowners. Now is the time to decide whether you could benefit from a flood insurance policy.
