10 Things You Need to Know about Flood Insurance

  1. Floods are the most common natural disaster in the US. All 50 states have experienced floods or flash floods recently. Water damage is the most common type of insurance claim.
  2. Flood insurance is a separate policy with its own rules, exclusions, and costs. Most homeowner’s insurance policies cover water backup from a drain or sewer, but that is not flood insurance.
  3. You will have to wait 30 days before your flood insurance policy goes into effect, so don’t’ think you can buy it a week or two before a big storm.
  4. Think twice about installing a home gym, spa or fancy furnishings in your basement. Basic flood coverage usually only covers a washer and dryer, portable air conditioner and freezer. You’ll need extra coverage for more.
  5. Flood insurance is inexpensive if you live in a low-risk area.
  6. You have 60 days to file a claim for damage from a flood. Take photos and a video of your losses.
  7. Keep your receipts, pictures, and paperwork to prove you have made repairs in case it happens again. Keep them out of the house – in the cloud, your phone or office.
  8. Flood insurance is limited to the footprint of your house and maybe the garage. Decks, patios, hot tubs, swimming pools, etc., are not covered.
  9. Beware of insurance scams. Check with your state insurance department to confirm that the agent and company are licensed to sell flood insurance.
  10. And be careful about flood-related contractor scams, especially those that approach you about repairs. Never pay for the work upfront.

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