Inland Flood Coverage
Inland Flood Coverage – New, Easy, Affordable
Rainstorms and snowstorms are becoming more frequent and intense, and affecting more areas of the country. Inland Flood Coverage is an innovative response to these changing weather patterns that are increasing the risk of flooding in low-to-moderate flood risk areas.
A Comprehensive View of Flood Risk
Flood risk is a result of both fluvial and pluvial flooding and should provide a comprehensive view of all sources and extent of coastal and inland flooding. It is important to account for both types of flood risks to properly estimate the view of inland flood hazard. This helps avoid “surprise” losses, unfavorable risk or incorrect underwriting guidelines.
Coverage Highlights
Includes coverage for damage to:
• Residence and certain structures (e.g. a shed or detached garage)
• Personal property inside the home (e.g. appliances, furniture and electronics)
• Personal property in a basement or sunken room
• Damage to property you move off premises
• Debris removal
• Living expenses if the flooded home must be vacated
Exclusions include, but are not limited to:
• Personal property not inside the home (such as patio furniture, barbecue grill)
• Decks and fences
• Lawns, trees, landscaping
Eligibility
• Single and multiple family dwellings (1-4 condo units) are eligible
• Risks located in the 100 year flood plain are ineligible
• Certain coastal risks with exposure to flooding from storm surge are ineligible
• This coverage is not available in Florida, Hawaii, Louisiana and Puerto Rico
The insurance companies that provide the inland flood insurance policies have adjusters who will evaluate the replacement value of the flooded property.
In order to determine the appropriate replacement value, homeowners would be smart to have an independent evaluation, preferably before any demolition occurs and before the flood adjuster begins his evaluation. The homeowner’s estimator should consider the full extent of the damage to not only sheetrock but damage to electrical, foundation, finishings, cabinetry, baseboards, moldings, and all of the other things that make a home special. Those are things that an insurance adjuster (likely assigned hundreds of claims) might not take into consideration but, will greatly impact the replacement costs, and the ultimate value of the settlement with the insurance company.
As with any insurance claim, providing the right type of documentation is important. Photographs of the damage are critical. But also consider photographs that highlight the home or affected area before the flood. For example:
• Was there a recent appraisal in which photos were taken?
• Was there a recent get together where the affected area is photographed?
• Any Instagram or Facebook posts that show the property or affected area before the flood?
In addition to the photographs, take a full measure of your contents. Flood policies cover contents as well. Unlike the structural damage which can be measured by replacement value, damages to personal possessions are calculated using actual cash value. That means that the policy will only pay the replacement cost minus the depreciation of the possessions.
Inland Flood Hazard is Evolving
The U.S. inland flood landscape is affected by a number of geographical and manmade changes. Inland flooding can occur across a variety of annual time periods with durations of hours to weeks, and impact a wide geographic area—from single catchments or cities to entire river basins across multiple states.
Exposure and population growth generally leads to the development of more structures at risk, such as roads or parking lots, which can significantly increase the flood-hazard profile of nearby structures. For example, during the Houston floods, where a significant property and population growth was experienced over the last 15-20 years, the city is more prone to flash flooding during intense precipitation events.
Note: This coverage does not satisfy federally regulated mortgage lender requirements for flood insurance.
Contact your agent to add this valuable coverage or Find an Agent for more information.