Tips for Flood Insurance Coverage

According to the Federal Emergency Management Agency's website, flooding is the most frequent and expensive natural disaster in the United States. Standard homeowner's or renter's insurance does not cover flooding, and more than 20 percent of flood claims come from properties outside flood-prone areas. Homeowners acquire insurance to safeguard their property and assets. What about flood insurance, though? What is it, and do you require it? What is its scope? How much does it cost?

What is Flood Insurance Coverage?

Flood insurance is a type of insurance that covers property damage caused by flooding. It is provided by the federal government through the National Flood Insurance Program and is secured by private insurance agents, similar to those who sold you your homeowner's insurance policy. Flood insurance does not cover water damage caused by burst pipes or overflowing washing machines. Your average homeowner's insurance will suffice for this purpose.

Most individuals believe they do not need flood insurance if their property is neither low-lying nor on a coastline. They will consult topographical maps to identify elevation dangers and bodies of water, although there are other causes of floods. The quick spring melting of snow, especially with precipitation, can lead to flooding. Heavy rainfall and hurricanes can also cause flooding. Few consider that since wildfires alter the environment and soil conditions, flooding happens when heavy rains follow wildfires. FEMA reports that 20% of all flood insurance claims come from properties outside of high-risk areas.

Should You Obtain Flood Insurance?

If you reside in a high-risk location, then the answer is affirmative. The Flood Disaster Protection Act of 1973 and the Flood Insurance Reform Act of 1994 compel the purchase of flood insurance on mortgaged homes in high-risk locations by federally regulated mortgage lenders. In addition, some lenders require it even if you do not live in a high-risk region.

Numerous individuals are unaware that their regular homeowner's insurance does not cover flooding. The coverage for flood insurance is separate. According to a 2013 survey performed by Allstate Insurance, "44 percent of Americans felt they were covered for weather-related floods, but only 15 percent reported purchasing NFIP flood insurance."

Discuss insurance with your insurance representative. They can evaluate to assist you in determining if flood insurance is best for you.

What is the Cost of Flood Insurance?

Although the annual average cost of a flood insurance policy is $700, your cost will vary on various factors. An underwriter will estimate the cost of your policy based on the amount of coverage you choose to purchase, the value of your property, and whether you wish to insure only the structure or the structure and its contents, as well as your risk profile.

The Flood Map Service Center of FEMA allows you to enter your address to evaluate the likelihood of flooding in your area. Your home will belong to one of three danger groups. Non-Special Flood Hazard Area (NFSA) has a moderate to low risk, Special Flood Hazard Area (SFHA) has a high risk, and Undetermined signifies that no risk assessment studies have been conducted in that area. Those in the SFHA group will pay a higher premium than those in the NFSA category.

Don't Make Assumptions.

Experts decide many insurance claims. Don't assume whether you know if something is covered or not. Although some instances involving are covered by insurance, there are various factors why the insurance company might try to get out of paying you. It is essential to realize that the insurance provider could try to convince you that the cost of fixing the damages is less than the deductible. Don't let the insurance provider take a free ride in rejecting your legitimate claim. Get an experienced home insurance attorney to help. Let the attorney evaluate through experts whether a claim is covered or not.

Consider Enlisting an Insurance Lawyer to Make Your Insurance Claim

Insurance companies pay hundreds of millions yearly for favorable laws and rulings from judges. In that regard, property insurance companies are not in the business of paying valid insurance claims. My extensive experience helps consumers hire an experienced lawyer before making an insurance claim.

Enlisting a highly skilled lawyer early generally provides the following benefits:

• You don't have to speak with the insurance company,
• The insurance company will have a more difficult time trying to trick you into saying the wrong thing,
• The lawyer will review the policy and file a notice of claim that complies with local laws,
• The lawyer will obtain experts to generate reports to support your claim,
• The lawyer may engage the services of meteorologists to prove weather patterns were ample to cause storm damage to your home.
• The lawyer may obtain the assistance of an estimator to generate an evaluation of your loss.
• The lawyer may enlist the services of a content expert to generate reports on the value of your personal property.
• The lawyer can hire an insurance agent to create a report verifying that the policy covered the type of loss claimed.
• The attorney could hire an engineer to review the causation of your loss.