What is Flood Insurance?
As you might expect, flood insurance provides coverage for property that is damaged by floods or
flooding. The important things to understand about flood insurance are that (a) there must be direct
physical loss to property, and (b) it must be a “flood” that causes that loss. So, the definition of “flood”
becomes important to understand.
Flood insurance policies define flood (at least what it takes for the policy to pay) as “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 your property.)” So, your sink or sump pump
overflowing is not a flood. Neither is a pipe that breaks in your home that fills your basement with
water. However, a creek or storm sewer that overflows and inundates the street or your neighbor’s
house along with your house is a flood. It’s important to note that a majority of flooding occurs in areas
that are NOT high-hazard flood zones.
Why is Flood Insurance Important?
There are three significant reasons this coverage is important.
- First, all properties, not just those located in high hazard flood zones, are subject to flooding.
Significant loss can occur to property from floods. - Next, “flood” losses are almost always excluded on standard property policies. Homeowners
Insurance policies don’t cover flood losses and neither do standard Commercial Property
policies. So the only way such loss can be covered is by a flood insurance policy. - Finally, because of where a property is located, flood insurance may be required by lenders. A
term that is commonly used when talking about flood insurance is the 100-year floodplain. This
is also referred to as “Special Flood Hazard Areas (SFHAs).” What this technically means is that
this property has a 1% annual chance of being flooded. Federal lending guidelines generally
require that property in a SFHA must have flood insurance protection. Many people balk at this
because 1% seems very low. However, over a 30-year mortgage, the likelihood grows from 1%
to at least 26%!
- First, all properties, not just those located in high hazard flood zones, are subject to flooding.
How Our Team Can Help:
Our experienced team of insurance professionals is here to guide you in determining your needs and finding the appropriate solution. We do this in several ways:
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
closely with you to customize an insurance plan that meets your specific needs and budget. - Risk Assessment: We will conduct a thorough risk assessment of your operations or ownership
interests to identify potential hazards and recommend appropriate coverage options. - Claims Assistance: In the event of a claim, our dedicated claims specialists will assist you
throughout the claims process, ensuring a smooth and hassle-free experience. - Expert Advice: With our in-depth knowledge of the insurance market, we can provide expert
advice and guidance to help you make informed decisions about your insurance coverage.
- Tailored Solutions: We understand that every client/situation is unique. Our team will work
Get Started Today!
Protect your investment and minimize financial risks with Flood Insurance. Contact our team today to
learn more about our insurance solutions and how we can help safeguard your ownership or business
interests.