El Nino is rapidly approaching, and expected to bring along heavy rains. If you’ve considered obtaining flood insurance, don’t delay. There is a 30 day wait period before the policy kicks into effect.
Flood insurance is designed to cover one peril; direct physical loss caused by an excess of water on land that is normally dry. The definition of flood as it relates to insurance includes overflow of inland tidal waters, abnormal accumulation of runoff, or mudflow. Generally, the condition must exist on two or more acres, or two or more properties in order to be considered a flood.
Most dwelling form policies include coverage for building property up to $250k, and contents coverage up to $100k. Contents coverage is typically purchased separately, so it’s a good idea to verify if you have the coverage.
Flood insurance is not a valued policy. In other words, if your home is completely destroyed it will only pay the cost to replace it, or actual cash value, in lieu of paying the policy limit regardless of cost to rebuild (as home insurance, typically does).
Certain items are typically not covered by flood insurance. These include damage caused by moisture, mildew, mold, lost currency, precious metals, valuable papers such as stock certificates, property outside of a building including trees, patios, fences, swimming pools, and additional living expenses such as temporary housing.
For additional information on flood insurance, please contact your friendly agent at HWP Insurance.
