What Kind of Insurance Covers Homes and Cars for Floods?
Floods are among the most frequent and damaging natural disasters, affecting thousands of Americans every year. These incidents can be caused by many common occurrences, including heavy rainfall, rapid snowmelt, overflowing bodies of water and infrastructural issues, such as damaged levees and dams. Given how floods can occur with little-to-no warning and the extensive damage that even a small amount of water can cause, having adequate insurance is essential.
What Insurance Protects Homes From Floods?
Flood insurance is often purchased through the Federal Emergency Management Agency (FEMA) and its National Flood Insurance Program (NFIP). Homeowners must be aware that standard homeowners insurance policies typically do not include coverage for floods. So augmenting existing coverage or purchasing separate flood insurance may be essential.
Although the exact details of a flood insurance policy may vary in its capabilities and limitations, coverage typically includes the following components:
- Building coverage—This part of flood insurance can provide financial protection for structures, including foundations, plumbing, electrical and heating systems, and attached fixtures (e.g., bookcases, cabinets and paneling).
- Contents coverage—This component of flood insurance can help policyholders recoup losses and damages involving their belongings, including electronics, furniture, clothing, portable appliances and other valuables up to pre-established limits.
What Insurance Protects Cars From Floods?
Vehicle owners can typically acquire and maintain financial protection from floods by including comprehensive coverage in their auto insurance policies. Comprehensive coverage is a common feature of auto insurance that can generally help pay for damage sustained by a policyholder’s vehicle arising from noncollision incidents, including floods, fires, hail, theft and vandalism.
When Is Insurance for Floods Needed?
Even those at relatively low risk for floods should strongly consider acquiring and maintaining adequate insurance. According to FEMA, over 20% of flood insurance claims are filed from regions classified as low and moderate risk.
Homeowners and motorists should also ensure they do not procrastinate purchasing appropriate coverage. Flood insurance policies typically have a 30-day waiting period, meaning that homeowners cannot afford to wait until a storm or other anticipated flood event is on the horizon. Similarly, auto insurance companies may not allow you to add comprehensive coverage on short notice if perilous weather is expected.
Get the Right Coverage
Insuring property against floods can be a complicated and nuanced process, which makes it advisable to work with a qualified insurance professional. At Eastern Carolina Insurance, our dedicated staff is well-equipped to help families and individuals in the Goldsboro, Kinston, Pink Hill, Snow Hill and Wilson areas assess and address their flood coverage needs. Visit our website or call 252-568-3310 for a personalized quote or learn more.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Flood Insurance