As hurricane season enters its peak period, warnings have been issued to those individuals.
The most active part of the Atlantic hurricane season is now underway and homeowners who have not yet purchased flood insurance are being cautioned to do so as soon as possible.
They are being warned that homeowners insurance may not cover the flooding from the storms.
With a flood insurance policy, the property is covered against storm surges in addition to the torrential rains which can cause significant flooding. The Insurance Information Institute has explained that this is a common result of hurricanes and tropical storms.
Though standard renters and homeowners coverage will protect people from the cost of flooding that is caused by a broken pipe or from rain that comes in through a window that has been broken by wind, a separate policy is required for coverage against flooding that occurs as the result of a backed up sewer or water that rushes in from overflowing rivers, or heavy waters rushing in over and in the ground.
The National Flood Insurance Program (NFIP) can help, but it is limited.
This program will pay a maximum of $250,000 for a home’s structure and up to $100,000 for the possessions that it contained. It will pay for the replacement of the home’s structure, but will only pay cash value for the possessions. Typically, the cost of replacing these items is significantly higher than their actual cash value, as they experience depreciation the older they are. There are also some forms of limits on the coverage available for any belongings or furniture that is stored in the basement.
As there is a 30 day waiting period before flood insurance will first take effect, it is vital to purchase it as early as possible and not wait until the last second. This makes certain that the policy will be in place and covering the costs of flooding in case a major storm or hurricane should strike and cause waters to rise.
Flood insurance is available to both homeowners and renters. Though it is necessary for people who reside in designated flooding zones, it is still worth considering for residences that are inland, as even they can be affected by flash floods.
