Roof leaks: If a storm damages your roof and allows water inside your home, flood insurance will not pay for the damage.A special addition to your homeowners policy is usually required for the insurance company to pay for this damage. Plumbing backup and overflow: If a sink or tub overflows or your sewer system or sump pump backs up and causes water damage, your flood insurance will not pay for the damages.Note, the list below isn’t an extensive one. You should ask your insurance agent about whether you’re covered for these types of events. However, you may save money by bundling other policies and then use the same insurer because of convenience.įEMA has a specific definition of a flood, so flood insurance will not cover events that do not meet FEMA’s definition even if those disasters cause water damage to your property. Savings: You cannot save any money by bundling flood insurance with your existing policies. It may also be easier to make a payment if they have you billing information stored in their system. Convenience: Purchasing flood insurance with your existing insurer may save you time since they will already have your information on file.Buying flood insurance through the same company that provides your other policies may offer some benefits. If you need flood insurance, you probably need homeowners, renters or condo insurance too. Policy service: If the company who creates and services your policy would go out of business or have other problems, you would likely have to deal with some extra paperwork and move your policy to another company.Coverage: Because the government underwrites standard flood insurance policies, you don’t need to worry that you won’t be covered if the insurance company who created and services your policy were to go out of business.You may wish to consider these ratings when selecting an insurance to create and service your flood coverage. Several organizations rate insurers and financial institutions for financial stability, meaning simply how well the company is doing financially. These companies may be more equipped to handle large-scale catastrophes. Disaster response: Some companies deploy special disaster response units to offer additional claims support and comfort to customers in major disaster areas.Check to see if the company makes it easy to find customer service and claims phone numbers on their website. Ask about the claims process and when representatives are available by phone. Telephone service: If you have a claim, you want to be able to reach someone 24/7.Also ask whether that agent would handle your claim or if you would deal with another company should you experience a flood. Local agents: If you feel most comfortable working with a local agent, find a company that has local offices.If homeowners want to protect all the things inside their home, they must purchase a separate contents policy.īecause all NFIP policies cover the same items and types of damage for the same annual rate, customer service and a company’s reputation are especially important when purchasing flood insurance. Contents coverage: Flood insurance policies cover structures and contents separately.Consumers cannot pay an additional premium to upgrade to a full RCV policy. Replacement Cost and Actual Cash Value: The policies offered through the NFIP pay either the RCV or ACV depending on the type of item damaged.If your home suffers water damage as a result of a flood as defined by FEMA, your homeowners or renters policy will not pay for any damages. Homeowners/Renters insurance: Neither homeowners nor renters insurance protects you against most types of floods.These expenses include temporary housing, food and lost income. Living expenses: Standard and Preferred Risk flood insurance policies underwritten through the NFIP do not cover living expenses when you are displaced from your house.Those living in a low- to moderate-risk area, designated with the letter X, B or C, can purchase a Preferred Risk Policy.
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