When homeowners and business owners purchase an insurance policy
they often overlook the need for flood insurance. Many people
assume that this type of coverage is automatically handled in their
policy. This is not the case. Unless it is specifically pointed out
to you when you purchase your policy that flood damage is included,
you are not covered.
High risk states, such as hurricane prone areas especially,
should be aware of this policy exclusion. Assuming you are
protected for flood damage could cost you everything you own in the
event of a flood.
Flood insurance can be purchased directly through the government
and a flood policy is relatively cheap. These flood damage policies
are issued through the National Flood Insurance Program. This
program, run by FEMA, is available to hoe and business owners
throughout the country.
Flooding can happen at any time and in any place. Because most
flood damage is caused by storms, you can never predict when these
events may occur. A flood insurance policy should always be held by
anyone that needs to protect property.
Business owners should always consider a flood policy even if
they do not own the building. If your building becomes flooded the
buildings insurance policy is not going to cover damage to your
suite’s contents. Your personal insurance on your business will
also deny you coverage because the damage was caused by flood
waters. You should always carry a flood insurance policy,
regardless if you rent or own.
Flood insurance also protects you from non-storm related
flooding. If a water main breaks and floods your structure the
damage will be covered in a flood policy. Most regular policies
only cover water damage from a pipe break if the break was located
within the actual structure. Breaks outside will not be
covered.
The National Flood Insurance Program can be accessed through the
FEMA site or a local insurance carrier. The process to get the
insurance policy is simple and, as stated before, very nominal in
price. The protection it offers you is well worth the associated
costs.