What Homeowners Need to Know About Flood Insurance

Devastating floods or hurricanes can leave many homeowners hopeless and miserable, especially those living in low-lying or flood-prone areas. Unfortunately, your typical homeowner’s insurance doesn’t cover damages resulting from floods and hurricanes. Since water damage is the most common type of insurance claim in Stony Point, NY, it is prudent for every homeowner to get flood insurance coverage. Hudson Valley Insurance Brokerage, Inc. provides affordable and effective flood insurance policies in Stony Point, NY, and the surrounding areas. Here are the essential things you should know about flood insurance.

Are you living in a flood-prone zone?

FEMA zones areas under low-risk, moderate-risk, and high-risk zones. Lenders don’t require you to have a flood insurance coverage if you’re living in an area designated as low-risk or medium-risk. However, you still need the coverage, especially if you feel that the designation of your area may be out-of-date. According to FEMA, about 25 percent of claims associated with flood insurance come from low-risk and moderate-risk areas, so don’t take chances.

What is covered by Flood insurance

Here are the common coverage options for flood insurance:

  • Contents: A typical flood insurance coverage pays for actual cash value for replacing the damaged or lost property as per the actual or depreciated value.
  • Property: This is a replacement cost coverage and will replace your damaged or lost items with a new one without taking into consideration the depreciation. If you’re insuring your single-family home that serves as your primary residence, this can be a viable option. 

Flood Insurance Doesn’t Cover all Risks

A good flood insurance policy will secure you from financial losses following a destructive hurricane or flood. However, your flood insurance policy will not cover everything. Here are a few exclusions you should know:

 

 

  • Water must come from outside your home: Flood insurance will not cover water damages resulting from malfunctions within your home, for instance, toilet overflows or frozen pipes. Your homeowner’s policy should cover such risks.
  • Landscaping and swimming pools are not covered: If your swimming pool burst or cracks and causes flood damage to your home, your flood insurance won’t cover the loss. Again, you’ll not receive any reimbursements for flood damage to your landscaping, flower gardens, trees, etc.
  • Small floods not covered: Water that causes damage must cover at least two acres of land and affect at least one other property to be considered a flood.

Additionally, living expenses and business interruptions incurred during the period your home is under repair aren’t covered by flood insurance. The value of any precious jewelry or money destroyed within the property is not covered as well. Unlike other insurance policies, flood insurance won’t kick in on your first day. You’ll have to wait 30 days for the policy to take effect. For more inquiries about flood insurance in Stony Point, NY, contact Hudson Valley Insurance Brokerage, Inc. today.