Key Facts You Might Not Know About Flood Insurance

Key Facts You Might Not Know About Flood Insurance

As the East Coast still struggles to recover from Hurricane Sandy, one tragic trend has emerged- so many property owners are not prepared for the severe financial damages they would suffer in the event of a catastrophic flood.

Some believe their homeowners policy would cover them. Others who live in hurricane-prone coastal zones see wind damage as a main threat to their homes, and sometimes don’t get enough coverage to protect against flooding. This was the case with Hurricane Sandy- it ended up being a major flood event as opposed to a wind event that is typically associated with hurricanes. One estimate in Property Casualty 360 found that at least 25 percent of properties damaged by Sandy were not insured for flood insurance.

Yet, there are multiple reasons why Flood Insurance is a powerful safety net to guard against the unforeseen damages of a disastrous flood. Getting the right flood insurance policy can help protect your Orlando home from losses due to heavy rains, flood surges, storm drain backups, and other similar damaging events.

Flooding is a significant threat to American homeowners. In assessing the risks, the Federal Emergency Management Agency (FEMA), placed more than 20,000 communities in the U.S. into a flood zone category.

The Orlando community participates in the National Flood Insurance Program a government-backed program to assist property owners to purchase insurance protection against losses from flooding. An Orlando flood insurance policy is different from the average Orlando homeowners insurance policy. Flood policies are generally emergency-based policies that are designed to get a homeowner back in their house, versus homeowners policies that are designed to replace what a homeowner loss.

For example, there is no coverage in a standard NFIP policy for property outside of the structure, such as swimming pools, hot tubs, decks, docks, and landscaping. In the case of Sandy, the thousands of piles of debris, cars, boats, and several feet of sand that washed up into many yards had to be removed at the cost of the owner.

To get the proper protection, it is essential that you understand both the risks that your home faces, based on your flood risk in the area, and you know exactly what is covered in your homeowner and flood insurance policies. At Newman Crane, our Orlando Florida flood insurance specialists can help set you up with the coverage you need. Contact us today for more information.

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