Flood (Part 2): Frequently Asked Questions
What is a flood? A flood is a general and temporary accumulation of water on normally dry land from the overflow of waters. It could also be from the rapid accumulation of surface water from any source. Two or more acres or two or more properties in your area must be affected to be considered a flood.
Is flood coverage expensive? Flood policies for homes in a low-risk flood zone can be as little as $300 per year. Flood policies in high-risk zones or for secondary homes have higher premiums.
Can my flood insurance be paid with my homeowner’s insurance? In many cases, flood premium can be included in the mortgage escrow with the homeowner’s insurance to be paid annually. Otherwise, the policyholder must pay the full-term premium before the policy goes into effect.
Is there a deductible for flood insurance? Yes. Flood insurance has a minimum deductible based on the amount of coverage requested. You can choose a higher deductible to lower the premium. Keep in mind that the deductible for your home contents is separate than the deductible for the structure of your home.
What if my basement floods? The structure of the basement is covered, such as the foundation, walls and unfinished drywall. Permanently installed appliances such as furnaces, water heaters and water softeners are also covered. Unfortunately, finished areas of basements including carpeting, finished drywall and cabinets are not covered. NOTE: Personal property coverage is limited to clothes washers/dryers, food freezers, and portable air conditioners.
Is my car covered for flood? If the vehicle is insured with comprehensive coverage and has not been driven into flooded areas, there is coverage under comprehensive on the auto policy. If the vehicle is insured with collision coverage and has been driven into a flooded area and gets stuck, there is coverage under collision on the auto policy. Liability Only vehicles are not covered for flood damage.
I have more questions, who do I talk to? Contact your agent for more information about flood coverage.