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5 MYTHS ABOUT FLOOD INSURANCE
When you buy a home , everyone knows to protect your house with home insurance but unless they are 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 high-risk areas , as well as moderate to low- risk 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 ground water coming into a house , is never covered under a standard homeowners policy . This can be confusing , as water damage can be covered by homeowners , but it has to occur via a burst pipe or storm water 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 , so 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 coverage 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 dollars . 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 .
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 . If the home loan requires Flood insurance , this waiting period is usually waived . Despite Flood being available from a number of insurance companies the premiums will always be the same as 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 .
Most homes are underinsured
by an average of 19 % *
Do you have enough coverage to rebuild ?
Company A $ 47,000 Underinsured
Erie Insurance 100 % Guaranteed
Bill Flinn Agency Inc
2754 S Park Rd Bethel Park , PA 15102-3858 www . billflinnagency . com
412-833-5351
Company B $ 51,000 Underinsured
Company C $ 38,000 Underinsured
* 64 % of homes are undervalued — and potentially underinsured — by 19 %, according to Marshall & Swift / Boeckh , a leading provider of building cost data to real estate professionals . ** ErieSecure Home SM with Guaranteed Replacement Cost requires home improvements over $ 5,000 to be reported within 90 days . Coverage of costs to comply with laws or ordinances is subject to limits . Depreciation may be deducted until repair or replacement is made . Visit www . eriesecurehome . com / details or talk to your ERIE Agent for more information . Not all companies are licensed to operate in all states . Go to erieinsurance . com for company licensure and territory information . Equal opportunity insurer . S1420b 5 / 12
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