flood

Flood Insurance: Protect Your Home or Business From Rising and Devastating Waters

It doesn’t matter where you live in Virginia… a flood is a risk you may have to contend with. It happens in every single state with some areas more prone to flooding than others. For that reason, you should have some flood insurance on your home and business.

Who Should Get Flood Insurance?

Since floods happen anywhere at anytime, consider taking a flood insurance policy on your home/business. This is especially true if you’re in an area at risk for floods. If you purchase a home and get a federally insured mortgage, your lender will demand you get flood insurance.

Where Are You Able To Purchase A Flood Insurance Policy?

You can acquire flood insurance through an insurance agent that participates in the National Flood Insurance Program, which is a government-backed program.

Does Your Homeowner’s Insurance Include Flooding?

It’s important to know that your homeowner’s insurance plan will not cover flooding. This means you’ll need additional coverage that includes your flood protection. If the home has never had a claim before for flood insurance, the premiums will be less.

 There are three ways you are able to discover if the home has ever had a flooding claim.

•  C.L.U.E. Report
•  Seller Disclosure
•  Home Inspection

A Look At The Three Ways To Find Out About Previous Flood Damage

C.LU.E. Report

C.L.U.E. is short for Comprehensive Loss Underwriting Exchange, which gives you the five-year history of the home. The insurance agent can get hold of this report or you can purchase it online or order it with the natural hazard disclosure report. This generally costs about $20.

Seller Disclosure

 Sellers are generally required to make known any previous problems such as former flooding issues.

Home Inspection

Consider hiring a home inspector to give you the rundown on your home. You can also look for signs of mold or water damage.  If a buyer isn’t happy with the results, they can ask for the earnest money back or cancel the transaction altogether.

How Floods Occur

When people think of floods, they generally think of hurricanes or tropical storms. Here in Hampton Roads we know a great deal about hurricanes. However, natural disasters are not the only reason for floods. Areas near bodies of water such as rivers are also prone to it. Flash flooding or rapid snowmelt can cause flooding.

As more trees are cut down and newer homes are built, there is less soil to absorb the water. On top of that, homes are being built on wetlands because this area is so cheap. When the water can’t sink in, a flood can occur. Heavy rain can easily drop more than two feet of water, which will cause a car to float.

Assess Your Flood Risk

Even if you’re living in a 100-year flood plain, that doesn’t mean a flood will occur every 100 years. This term can be confusing but what it actually means is you have a one in 100 chance of a flood each year. Make sure your insurance agent checks the flood maps so you’ll know for sure if your home is situated in a flood plain. If you are, determine your risk level.

 What Does A Flood Insurance Policy Cost?

Don’t ask yourself how much it costs to pay for a flood insurance policy; ask yourself what it would cost without one. Even one inch of water can do a bit of damage and can cost you thousands and thousands of dollars.

Coastal Policy – If your home is on the coast, your premiums are likely to be high. Most buildings can be insured for coverage amounts of $250,000 without any prior claims. Renter’s coverage generally has coverage amounts of $100,000.

High Risk Policy – If you’ve never had a flood claim, you’re liable to pay approximately $2,400 for the coverage amount of $250,000. If it’s just a content-only coverage plan, it’s generally $100,000.

Preferred Risk Policy – This type of policy with $250,000 worth of coverage will cost about $317. If you need contents only coverage, it is about $196 a month. If the home has a previous flood claim attached it, that number can rise to about $1,200 or more.