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5 Myths About Flood Insurance
When you buy a house everyone knows to protect it with home insurance, but unless required by their bank at closing, most people neglect to purchase flood insurance. In fact only 12 % of homeowners in the United States have a flood policy. Why is this number so low? It may have less to do with choice and more with regard to confusion about flood insurance eligibility and coverage.
Myth 1: I have to be in a flood plain to get coverage.
This is the most common misconception about flood insurance and is completely incorrect. Flood coverage is available to those in moderate to low-risk areas as well as highrisk areas, and sometimes at a lower cost. A flood can occur anywhere; in fact one-fourth of all flood claims come from lower risk locations.
Myth 2: My homeowners policy will take care of it.
Flood coverage, which is defined as groundwater coming into a house, is never covered under a standard homeowners policy. This can be confusing, since water damage can be covered by homeowners insurance, but it has to occur via a burst pipe or stormwater coming into the house through a damaged roof. Water from a sewer drain backup is not covered either, but can be added to a home policy for an additional cost. Flood coverage, however, cannot be added and has to be purchased on a separate policy.
Myth 3: My house has been flooded before; I can’ t get coverage now.
This is untrue. Although there is always a 30-day waiting period for coverage to take effect, a home that has been previously flooded can be covered under flood insurance as long as it meets standard eligibility requirements.
Myth 4: Flood coverage won’ t cover my personal belongings.
Coverage for personal property inside your home is available, up to a limit of $ 100,000. There are limitations for items stored in a basement, however; in basements with four walls completely underground, personal property coverage is excluded.
Myth 5: Flood coverage is only available for those who own a home.
Flood coverage is not limited to homeowners only. If you rent, you can obtain coverage as well. It’ s also available for non-residential buildings, so business owners can cover their buildings and property under the national flood program too.
This INdustry INsight was provided by The Bill Flinn Agency.
For the last 40 years The Bill Flinn Agency has been serving the Bethel Park and South Hills communities. Since opening our doors in 1972 our mission has been to treat our customers by the golden rule. Learn more about us at www. billflinnagency. com, or stop by our office on South Park Road in the heart of Bethel.
What else should I know about obtaining a flood policy? The National Flood Insurance Program( NFIP) has some specific rules that are important to know if you are looking to purchase coverage. This first, which was touched upon earlier, is that there is a 30-day waiting period after purchasing coverage before it takes effect. This is important to know in the case of purchasing a new home, as you will need to make sure to buy the coverage at least a month before your closing date. However, if the home loan requires flood insurance, this waiting period is usually waived. Despite flood policies being available from a number of insurance companies, the premiums will always be the same, since they are set by the NFIP. However, the yearly premiums must always be paid in full, as this is a requirement of the NFIP and there is no getting around it no matter what company you write with. Finally, elevation certificates may need to be obtained during the process at an additional cost.
So if you are concerned about protecting your home or business against the ravaging effects of flood damage, the next step is to call an independent insurance agent to advise you further and guide you through the process. We at the Bill Flinn Agency are here to answer any questions you may have, so give us a call at 412.833.5351.
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Bill Flinn Agency Inc
2754 S Park Rd Bethel Park, PA 15102-3858 www. billflinnagency. com
412-833-5351
ERIE ® life insurance products and services are provided by Erie Family Life Insurance Company. Information regarding additional terms, conditions, exclusions, licensure and territory information is available at erieinsurance. com / life. Eligibility for insurance coverage will be determined at the time of application, based upon applicable underwriting guidelines and rules in effect at that time. S1603 5 / 14 © 2014 Erie Indemnity Company
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