|
Water, Water, Everywhere!
Fall is finally here and though we hate to admit it, it can be one of our wettest
seasons. With today's weather becoming so unknown and chaotic, it is important that
you have the right tools you need to prepare yourself for possible misfortunes.
One simple and important tactic is to make sure you have proper insurance on your
home. Whether you live in a $5,000,000 home or a $120,000 condo, what is yours is
yours and it is important that you protect it against one of the greatest evils
of weather; WATER.
More times than not, home insurance policies do not include water backup and flood
coverage on a basic, standard policy. If you do not have the coverage or are wondering
why you should keep it, then you've come to the right place.
What is water backup coverage?
Water backup coverage helps to protect you from water that backs up into your home
from a sump pump failure, or from backup of sewers and or drains. There are a lot
of reasons why having water backup coverage is so vital. If your power goes out
and your sump pump fails, the water that will leak into your home can cause thousands
of dollars worth of damage. When heavy and unexpected rains hit your neighborhood
and the vulgar sewer water backs up into your house, you're going to want assistance
to help clean up and replace damaged materials - something that many people aren't
financially able to do on their own in this economy. Water backup is usually an
additional endorsement that you can add onto your policy. Some companies may include
a small amount of coverage such as $5,000 in a package but it usually needs to be
added on as an extra coverage on a standard homeowner's policies. It is very important
to ask these questions.
- Do I have water back up coverage?
- If so, how much coverage do I have?
- If not, how can I obtain this extra coverage and what will it cost?
This coverage is especially important for those who have basements and lower levels
in their homes, but is not limited to just that group. More emphasis is placed on
those with finished basements and who have expensive toys in these areas, but water
can backup in a first floor condo and a townhome as well. Heavy rains can allow
sewers to backup into your home through the sump pumps, toilets, bathtubs and even
sinks. That water can easily damage your furnace, hot water tanks, washers, dryer,
carpets, and whatever else that may come into contact with the water. The water
can ultimately cause mold and further damage to your home.
What is Flood Insurance?
Flood insurance is another coverage that protects your home against the damaging
effects of water. Flood is defined by the National Flood Insurance Program as "A
general and temporary condition of partial or complete inundation of two or more
acres of normally dry land area or of two or more properties (at least one of which
is your property) from: Overflow of inland or tidal waters; Unusual and rapid accumulation
or runoff of surface waters from any source; Mudflow; or Collapse or subsidence
of land along the shore of a lake or similar body of water as a result of erosion
or undermining caused by waves or currents of water exceeding anticipated cyclical
levels that result in a flood as defined above."
When water comes into your home from the outside, it is crucial that flood insurance
is present to obtain any assistance. If you do not have flood insurance, then you
most likely would not be covered for any type of damage or clean up assistance from
your standard homeowners policy. A common mistake many people make when determining
if they need flood insurance is assuming they do not need coverage if they do not
live near a large body of water. While some "flood zones" are more susceptible than
others, that doesn't mean those who aren't close to water aren't at risk either.
Some mortgage and insurance companies require that an individual carry flood insurance
due to the proximity of their home to water, but anyone who owns a home, or lower
level condo and townhome may obtain such insurance. The weather today isn't as predictable
as it has been in the past and many people are without the necessary coverage for
these heavy rain storms. Thousands of dollars can be lost trying to recover after
a flood; having flood insurance to cover yourself for the possibility can help save
you from a very large financial loss. Flood insurance policies usually have a reasonable
premium, which is one of the biggest reasons they are so highly encouraged. It is
important to note that there is normally a waiting period of 30 days to obtain coverage,
so it is important to have it before it's too late.
Flood insurance vs. water backup coverage
A common misconception however, is that water back up and flood insurance is the
same coverage, when in fact, they are not. Neither covers what the other does. They
both hold their vital purposes for a homeowner to be properly insured and neither
is very costly when considering the amount they can save you. Flood insurance is
almost always a separate policy from your homeowner's policy altogether, which is
another common misconception. Flood insurance can be obtained through some specific
companies and also through the National Flood Insurance Program (NFIP). Water backup
is usually available by endorsement to your homeowners policy. If you are concerned
about the cost of either coverage, consider increasing your deductibles and taking
more responsibility if a loss should occur. This can help keep your premium lower
and will still save you more money than if you went without the coverage.
Why should it matter?
Floods can occur across the entire 50 states, not to mention across the globe; not
just along the coasts and larger bodies of water. They can and do happen in dryer
flat lands, in cities, deserts and even in your small town, which may not be near
a lake or a river; places you may not suspect. According to the National Flood Insurance
Program, nearly 25% of flood claims actually come from areas that are not in high
risk flood zones. Although the government has made disaster assistance programs
available, it is very important that you do not rely on them for coverage. Not everyone
will receive the grants that can be made available and many will come out having
to obtain a loan instead, in order to cover their loss. Loans can carry high interest
rates and can cost much more than if you had a flood policy.
How can we help?
With a quick phone call, we can review your policy to help determine if you have
water backup and if so how much you have and also provide you with a quote on flood
insurance if you do not currently have it. But don't wait until it is too late!
If you have a loss
We highly suggest that you do not let the dirty water sit in your home! Take pictures
and call us as soon as possible. Our in house claims manager can assist you and
refer you to a restoration company. Insurance company adjusters often do come out
and inspect damage but many times there are hundreds of people with water damage,
and they are not always able to get to everyone immediately so it is crucial that
you don't wait to start the clean up process.
|
