Risk & Business Magazine Hardenbergh Magazine Fall 2019 | Page 15

FLOOD INSURANCE
The Flood Of Confusion:
MISCONCEPTIONS ABOUT
FLOOD INSURANCE
BY: MARIE MANLEY
W
hen most people think
about flood insurance,
they might think about
large rivers that crest
and break their banks
during storms, or beach towns that are
inundated by extraordinary storm surge
during news-making hurricanes. Floods
are one of earth’s most common and
destructive natural hazards, and they occur
everywhere, not just near bodies of water
you would expect to flood. In the United
States, all 50 states have experienced
flooding in the past decade.
Flooding can occur over days or hours,
or rapidly with very little warning. Take
the example of a recent storm early this
summer in South Jersey. During the storm,
heavy rains over a short period inundated
storm drains, flooding yards and streets
with a deluge of rushing water. The
flooding led to extensive flood damage,
including a home in Haddonfield, New
Jersey, that saw its foundation collapse.
That homeowner, among others suffering
damage from that storm, learned too late
that homeowners insurance excludes
floods. Most did not carry separate flood
insurance and will be left to carry the
burden of repairs and construction from
their own pockets.
If a pipe breaks under the sink and “floods”
the kitchen, do you need flood insurance?
What if the toilet overflows and “floods”
the bathroom? Or the sump pump fails
during a storm and water comes up
and “floods” the basement, then do you
need flood insurance? No—these are not
examples of flooding, although you may
argue that when cleaning it up!
So, what exactly is a flood?
According to the National Flood Insurance
Program (NFIP), the definition of a flood
is generally as follows: a general and
temporary condition of partial or complete
inundation of 2 or more acres of normally
dry land area or of two or more properties
(at least one of which is the policyholder’s
property) from overflow of inland or tidal
waters, unusual and rapid accumulation or
runoff of surface waters from any source,
or mudflow.
So when do we need flood insurance? A
neighbor’s aboveground pool collapses,
pouring water into your basement
windows—that is a flood. Heavy rains
cause rising water to inundate your home
at the surface level—that is a flood. A local
stream overflows, entering your home—
that is a flood.
During that particular summer storm,
a state of emergency was declared in
Burlington County in multiple towns
where flooding along the local rivers
reached record-breaking levels, pouring
into local homes, some of which had never
seen flooding before. In Camden County,
there were 70 emergency water rescues
reported as people were caught unaware
and unprepared in homes and cars in the
flooded areas. With our changing climate
and the increased strength of storms in
recent years, it is clear that anyone could
experience a devastating flood in an area
that’s never flooded before.
Floods are usually excluded on standard
homeowners and renters policies, but
anyone can purchase flood insurance, and
there are more options than ever before.
You can purchase flood insurance through
the National Flood Insurance Program
(NFIP). There are growing numbers of
insurers writing flood insurance in the
private markets with more coverage
options. And a few companies are even
adding it to their homeowners programs
as an endorsement! With hurricane season
quickly coming up, it pays to be sure you
are properly protected against floods ahead
of time. +
Marie Manley works in the Personal
Insurance Department as part of the
Business Development Team. Her primary
focus for more than 20 years is to offer
consultation and advisory services to clients
for their personal insurance. She helps them
make educated choices with their insurance
portfolio, which includes home, auto,
collections, coastal property, and individual
life and disability insurance.
Marie is a member of the Voorhees
Business Association, the Audubon-
Haddon Township-Oaklyn Rotary, the
Doctors Advisory Alliance Group, and BCSJ
(Businesses Committed to South Jersey). She
resides in South Jersey with her two children
Natalie & Alex.
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