Most Homeowners Insurance Policies Do Not Include Flood Insurance
(Erie, Pa., 3/9/2010)- Floods are not always caused by nature’s wrath. Melting snow combined with frequent rain showers can quickly saturate the soil and produce flooding. Unfortunately, many homeowners are unaware that homeowner’s insurance does not cover flood damage regardless of cause until it is too late.
“Many people incorrectly assume that regular homeowners insurance covers damage done by floods or rising waters. They don’t realize until it is too late that all basic homeowners insurance policies exclude flood,” says Dan Williams of Williams Agency. “Only flood insurance will cover losses in the event of a flood.”
Flood insurance is available solely through the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP). There is a 30-day waiting period for the policy to go into effect, so it’s important to start the process before the spring storms arrive.
Do not assume that federal disaster aid will protect you. Before most forms of federal disaster assistance are offered, the President must declare the area a major disaster. According to the Insurance Information Institute (I.I.I.), less than 10% of all disasters are declared so by the President. Flood insurance claims are paid even if the President does not declare an area a major disaster.
FEMA reports that nearly 25 percent of flood insurance claims come from properties considered at low or moderate risk of flooding. Floods and flash floods occur in all 50 states and most people live or work in areas that have some risk of flooding, says I.I.I. Even if you do not live in a high-risk area, flood insurance is a good idea.
If you need to purchase flood insurance, contact your local Erie Insurance Agent for details or contact the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP). Premium costs for residential properties will vary depending on coverage, which is available for building only, contents only or building and contents.
According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 16th largest automobile insurer in the United States based on direct premiums written and the 18th largest property/casualty insurer in the United States based on total lines net premium written. The Group, rated A+ (Superior) by A.M. Best Company, has over four million policies in force and operates in 11 states and the District of Columbia. To learn more, visit www.erieinsurance.com.
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