Today, March 14, 2011, is the start of Flood Safety Awareness Week. The purpose of this week is to make people aware of the dangers and hazards that are associated with flooding. It’s not something most people think about, until after a flood has already happened. Do you have the right kind of insurance to cover damages due to flooding?
Flood Safety Awareness Week was started by the National Oceanic and Atmospheric Administration (NOAA). It seems rather fitting that a group whose acronym is pronounced “Noah” is involved with pointing out potential dangers that could happen due to flooding. When it has been raining hard for more than a few days, it is inevitable that someone will make a joke that involves the expectation of seeing The Arc floating by. It is somewhat comforting to have “Noah” advising about what to do if a flood happens.
Does your insurance cover flooding? The answer to that question might not be what you expect. Typically, homeowners insurance policies do not cover damages that were caused by flooding. In fact, many of them will have specific wording to the effect that they absolutely will not cover anything damaged by flooding. This confuses some people, because the assumption is that a homeowners insurance policy will cover all damages that occur to your home and property.
Instead, you need a separate flood insurance policy. It is advisable that you purchase this policy before you are actually involved with a flooding situation. Waiting until disaster has occurred will be problematic for many reasons. It may be harder to get approved for coverage after the fact. An insurance company could, potentially, refuse to cover claims made for damage that happened before you got the policy. Dealing with claims takes time, and the last thing you want to happen after a flood has damaged your property is to have to wait for paperwork to slowly work it’s way through the offices of the insurance company before any action is taken towards fixing the damage.
The National Flood Insurance Plan (NFIP) is a program from FEMA. It has information about where to find an insurance company that you can purchase a flood insurance policy from. You might be required to buy flood insurance if your home is located in a flood plain. NOAA says that homes that are located in a high risk flood plain will experience a flood about 26% of the time that the homeowner is paying off a 30 year mortgage.
Make sure you are aware of some basic concepts that will help you stay safe in case of flooding. It’s never a good idea to go into a flooded area. Don’t assume that you can safely drive your vehicle through the flooded area of road ahead of you. Don’t go swimming in flooded rivers or streets, because there could be sewage in the water, making it a health risk.
Image by marnanel on Flickr