A Newbie's Guide to Flood Insurance

“Here I am. Rock you like a Hurricane”

Hurricanes are great as long as they are kept in song lyrics or as team names. Unfortunately, they can cause unspeakable damage to homes, businesses and when “Raindrops Keep Falling on My Head”, floods can cause billions of dollars in losses. Of course, it’s not only hurricanes that cause flooding. Flooding occurs most commonly when “A Hard Rain’s A-Gonna Fall” and when natural watercourses do not have the capacity to convey excess water. If you’re new to flood insurnace, here are a few things you need to know:

• Flooding happens in all 50 states
• Just a few inches of water from a flood can cause thousands of dollars in damages
• About a foot of water can move a car
• Only 6 inches of water can knock a person off their feet
• ‘Flash Floods’ often bring walls of water 10-20 feet high

Homeowners insurance does not cover damage from floods. Even if your home is NOT in a special flood hazard area (High Risk Zone), you can still suffer from the effects of flooding. Fun Fact: 25% of all flood claims come from low hazard flood zones. Homeowners who want flood protection have two basic choices: Standard or Preferred Risk Policies.

Standard Policies
The coverage that is available under a Standard National Flood Insurance Policy usually includes building and contents coverage. Replacement coverage is only available to select policies that must meet the following conditions:

1. Insured building must be a single family dwelling.

2. It is your principal residence, meaning you live in the structure a minimum of 80% of the year.

3. The building coverage is at 80% of replacement cost. Or at the maximum limit of 250k.

 

Preferred Risk Policies
Preferred Risk Flood Policies were created for homeowners and tenants in low to moderate flood hazard areas. To qualify for a Preferred Risk Flood Policy, you need to own a one-to-four family dwelling or non-residential property in a low to moderate flood hazard area that meets certain requirements.

So, when your neighbors are asking, “Who’ll Stop the Rain?” you’ll be the one “Singin’ in the Rain” knowing your home and its contents are covered!

                                 Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

Torrential Tuesday - Why do I need flood insurance?

Flooding is the #1 ranked natural disaster in the country and yet there are 3 common misconceptions about flood insurance that permeate in the United States.


#1 My Homeowners Policy Covers Flooding

Your homeowners policy more than likely does not cover flooding. You may have optional coverage for back-up of sewers and drains, but flooding caused by natural disasters, or similar events are provided by different agencies such as The National Flood Insurance Program to allow policy holders the maximum flexibility in coverage and save them money with lower premiums.

#2 I Don’t Live in a Flood Zone, So I Don’t Need Flood Insurance

Believe it or not, we all live in a flood zone which has the potential to fill with water any time. The difference is the severity or risk of flooding in your particular zone. However, industry-wide, over 20% of all flood claims come from people who are NOT in high risk areas, and 1/3 of all disaster assistance goes to flooding victims according to FEMA. So we’re all at risk. Per the National Flood Insurance Program, flooding is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow caused by various conditions such as severe storms and sources of rapid water accumulation.

#3 Flood Insurance is Too Expensive

Depending on the level of your risk zone (determined by FEMA), flood insurance is available for as little as $57/year and averages as little as $129/year for those in “Preferred Risk Zones.” Even in higher risk areas, flood insurance is typically less than $400/year which is much less than the costs associated with recovering after a flood. Cost estimates by Floodsmart.gov estimate that just 1” of water in a 2,000 sq. ft. home can cause over $20,000 in damage.

                                     Contact us for all your Insurance needs! (321)725-1620  
                                                             Bob Lancaster Insurance

Serving Florida since 1964

Surge Protection

Rising sea levels and continued coastal expansion are causing coastal flooding to be a significant hurricane risk.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964

 

Do you know Flood Insurance?

There are a lot of new changes coming to Flood Insurance effective Oct 1, 2013.  There is one change that's already on your policy that you may not even have noticed.  Increased Cost of Compliance (ICC) coverage.

If your property was damaged by a flood, you may be required to meet certain building requirements in your community to reduce future flood damage before you repair or rebuild your damaged property. To help you cover the costs of meeting those requirements, the National Flood Insurance Program (NFIP) includes Increased Cost of Compliance (ICC) coverage for all new and renewed Standard Flood Insurance Policies.

How much coverage is available? Flood insurance policyholders in special flood hazard areas can get up to $30,000 to help pay the costs to bring their home or business into compliance with their community's floodplain ordinance. Unfortunately, $30,000 is often not enough, but it is a start.

You may file an ICC claim in two instances:

First, if your community determines that your home or business is damaged by flood to the point that repairs will cost 50 percent or more of the building's pre-damage market value, you are eligible. In the flood claim world, this is referred to as substantial damage. Your local ordinance will provide you a substantial damage letter that you will need to provide to your flood carrier.

One is also eligible for ICC coverage if your community has a repetitive loss provision in its floodplain management ordinance and determines that your home or business was damaged by a flood two times in the past 10 years, where the cost of repairing the flood damage, on the average, equaled or exceeded 25 percent of its market value at the time of each flood. This is called repetitive damage. Additionally, there must have been flood insurance claim payments for each of the two flood losses.  Again, you must provide supportive documentation reflecting your eligibility.

It is important to file all flood claims properly and include all necessary supporting documentation.  FEMA provides a specific ICC Proof of Loss form that needs to be filed that is different from FEMA’s standard Proof of Loss.

Bob knows Flood Insurance.

Contact us for all your Insurance needs! (321)725-1620

Bob Lancaster Insurance

Serving Florida since 1964