Misconceptions Of Flood Insurance

In areas of high risk, it is said that there is a 25 percent chance of flooding during the 30 years of a home mortgage. Waiting for a flood warning is too late before you consider flood insurance. Also, do not assume that your homeowner’s policy covers for the peril of flooding or assume that you must be in a floodplain to obtain flood insurance. These misconceptions risk the life of your home and your security. The United States has experienced 100-year floods, and the last thing a person was concerned about was flood insurance until the first flash flood ruined their home in an area that never flooded in a homeowner’s lifetime.  

Flood disasters have affected millions of Americans, and as a result, you have to keep up with any changes in the analysis of flood zones. Both Hurricane Katrina and Sandy have forced Congress to considered new legislation which affects the insurance profession. Insurance agents are your first source of changes in private flood insurance because the National Flood Insurance Program is said to be broken. FEMA (Federal Emergency Management Agency) has thousands of claims that are being disputed since 2005.

You should not assume that FEMA’s flood insurances cover all your losses. The loss of your physical structure is not insured over $250,000 which does not rebuild a $300,000 home or may not replace your possessions which are capped at $100,000. While "excess flood insurance" may be provided by private insurance, the $250,000 FEMA cap should be considered, in sad jest, as a "deductible." Further, what is meant by water damage? You must read your policy which may cover water damage coming through the roof but not the filling to the second story of your house with water. Further, your flood insurance policy may not cover relocation or replace your refrigerator in the basement.

The agents of Shell Insurance Agency in Deer Park, TX will provide advice and support when facing a potential flooding disaster. Please call!