Flood Insurance

If you live in the US, you are susceptible to a flood and may require flood insurance. Don‘t let your dreams and everything you worked for get washed away because you don’t have flood insurance. Even if you do not live near water, there is still a chance that your property and goods could be flooded since nearly 25% of all flood losses occur in the low to moderate risk areas. In 1998, San Antonio, Texas was hit with a 100 year flood that poured 22 inches into the city over a weekend. Four years later, the 100 year flood returned dumping 35 inches again on a weekend.

According to FEMA, a flood is defined by a general or 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) from the following:

  • Overflow of inland or tidal waters.
  • A source that has an unusual or rapid accumulation or runoff of waters.
  • Collapse or subsidence of land along the shore of a lake or similar body of water a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood.

Flood insurance works by insuring your home in the event of a flood causing damage to your property. Unfortunately, many consumers are not aware that their homeowners insurance does not automatically include flood insurance. It is a policy that has to be purchased separately from the home owners’ policy. Flood insurance typically does not cover goods that are outside the home are not covered.

A standard flood insurance policy pays for the direct physical damage to your insured property and will most likely cover the following:

  • Any structural damage and the foundation
  • Plumbing and electrical systems
  • Furnace, water heater the central air conditioning unit
  • Carpeting that has been permanently installed over an unfinished floor
  • Any clean-up due to floor debris

Policies can be issued in three types of forms: Dwelling for most homes, General Property and Residential Condominium Building Association. If you are attempting to secure a loan for a specific property that is located in the Special Flood hazard Area in which flood insurance is available under the flood Disaster Protection Act, a national banking institution may not make, extend, or renew any mortgage until that property is covered by a flood insurance policy.

If you think your property may be at risk or if you have any concerns about the possibility of flooding in your area and just need to assess the coverage to protect your assets, we invite you to call a Copeland agent today to learn more.