Winter-weary residents in many states look forward to the change in the weather, as warm breezes, bright sunshine and the occasional rainfall reduce the remaining snow piles to trickles of water. The end of winter, however, brings with it an increased chance of flooding in many areas. Homeowners who are concerned about the potential for flooding need to understand a few key points about flood insurance.
Standard property and business insurance policies do not cover flood damage. However, many insurance companies participate in the federal government's National Flood Insurance Program (NFIP), which contracts with insurance companies to sell and service its policies. To qualify for the NFIP program, property owners must live in a community that participates in the program.
By the time you get a flood warning, it's too late to buy insurance. The NFIP requires flood insurance to be in place at least 30 days before it provides coverage, unless the policy is purchased in connection with the making, increasing, extending or renewing of a mortgage loan.
Homeowners are four times more likely to receive loss from flood than from fire. Between 70 and 80 percent of all natural disasters in the United States involve flooding. Flooding causes include:
•· Melting of heavy winter snowfalls
•· Overflow from lakes, streams and rivers
•· Heavy rainfall
•· Inadequate drainage systems
•· Poorly planned urban development
If you feel you're at risk for flooding, get more information as soon as possible. Ask an insurance agent about NFIP flood insurance. Take simple steps to reduce your exposure, like moving electronic devices and other valuables to higher spots within your home. And if you need flood insurance in excess of the NFIP's limits of $250,000 for residential coverage and $500,000 for commercial coverage, ask your insurance agent about specialized policies to provide excess coverage.
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