Flooding can be one of the most devastating natural disasters for homeowners and businesses, yet many people are surprised to learn that their standard insurance policies do not cover this risk. Whether you own a home or operate a business, understanding the limitations of your insurance and knowing how to add flood coverage is crucial to protecting your assets.
Flood Coverage: What’s Not Included in Standard Policies
Many assume that their homeowners or business insurance policies will automatically cover all types of water damage, but this is not the case. Standard homeowners insurance policies typically cover damages from incidents like broken pipes or roof leaks, depending on the cause of loss. The standard homeowners and business insurance policies do not include coverage for flood damage caused by natural events including, but not limited to rising waters, surface waters, waves, heavy rains, storm surges, river overflow and mudflow.
The same applies to standard commercial property insurance policies for businesses. Flood damage can lead to costly repairs, lost inventory, and downtime, yet it’s excluded from most business insurance plans. Without proper flood coverage, you could be left facing significant financial losses if a flood impacts your property.
How to Add Flood Insurance Coverage
To adequately protect your home or business from flooding, you’ll need to purchase a stand-alone flood insurance policy. This type of policy is specifically designed to cover losses caused by floodwaters, including structural damage to your property and damage to its contents.
Here’s how you can get started with flood insurance:
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Contact an Insurance Agent Experienced with Flood Coverage: Not all insurance agents are equally familiar with flood insurance, so it’s important to work with someone who understands the specific risks and needs in your area. An experienced agent can help you evaluate your property’s flood risk and guide you in selecting the right policy.
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Understand Your Coverage Options: Flood insurance policies vary based on factors like your location, property value, and flood zone designation. Your agent will explain your options and provide guidance on coverage limits that suit your needs, whether you’re insuring a residence or a commercial property.
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Enroll Through the National Flood Insurance Program (NFIP) or Private Insurers: Flood insurance can be purchased through the NFIP, a program managed by FEMA, or through private insurance companies that offer similar products. Your agent will help you determine which option is best for you based on your situation and potential risk factors.
Why Flood Insurance Matters
The United States has been experiencing unpredictable weather, with frequent storms and flash floods. Even properties outside of designated high-risk flood zones can experience flooding. Having flood insurance ensures you’re financially protected against these events, giving you peace of mind knowing that your home or business is secure.
Get Started Today
Don’t wait until the next storm is in the forecast. Protect your home or business by adding flood insurance today. Contact a knowledgeable insurance agent who specializes in flood coverage to guide you through the process and help safeguard your investment. Flooding is unpredictable, but your response doesn’t have to be. Get the right coverage in place to weather the storm with confidence. Flood insurance policy forms vary from insurance company to insurance company, which is why it’s important to read your policy.
The Author
Christian Kopp is the co-owner of Blueprint Risk, a risk management and insurance agency with locations in Tulsa, OK and Austin, TX. Blueprint Risk empowers their clients to take control of their future by identifying existing and potential risks and developing a plan of action using their BluePrint 365™ process. Contact Christian via email at ckopp@blueprint-risk.com.
