One of the key lessons learned from Superstorm Sandy is that many homeowners under-estimated the risk of flood.
Flooding is a serious threat in many areas of the country. According to FEMA, 90% of all natural disasters that occur nationwide involve flooding with the average residential flood claim at $30,000. Flash floods can be attributed to many factors, including deteriorating levees and dams as well as construction and real estate development that can change an area's natural drainage.
Many homeowners who incurred property damage from the storm did not have insurance that covers losses from floods. Homeowner's insurance typically excludes flood damage from coverage, so it's important that you know what your policy covers and consider purchasing a separate flood insurance policy to protect your home.
Here's what you need to know about flood insurance:
- Flood insurance is available to homeowners, renters and business owners through the National Flood Insurance Program and can provide coverage for your property and its contents.
- Homeowner's premiums average about $600 annually. Costs vary depending on how much insurance is purchased, what it covers and your property's flood risk.
- Coverage goes into effect 30 days after purchase, so plan ahead.
Remember, it only takes a few inches of water to cause major damage to your home and its contents. Your HUB broker can review flood maps for your area and recommend coverage that can protect you from this potentially devastating loss.
Get tips from HUB International on what to do before, during and after a flood.