Flooding & Flood Insurance

4/15/2020 (Permalink)

The spring rainy season is upon us.  We have already begun receiving calls from home and business owners alike with flooded basements.  But did you know that where the water comes from is an important factor in determining if your homeowner’s insurance policy will cover losses associated with water in your basement?

Most often, water that flows across the ground and enters your basement through a window, door, or any other crack or opening is considered “flood water”.  According to Wikipedia, “Flooding is defined by the National Flood Insurance Program (NFIP) as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (at least one of which is your property) from:  Overflow of inland waters, unusual and rapid accumulation or runoff of surface water from any source…”

Losses associated with flood water are not generally covered by a standard homeowner’s insurance policy.  To be covered for losses associated with flood water, homeowners must have specific flood insurance.  Yet it is estimated that nationwide only about 20% of homes at risk for floods are covered by flood insurance.  If you live near a body of water and don’t have flood insurance, talk to your lender or insurance agent about this very important coverage today.