Do You Need Flood Insurance? By Floyd Arthur

The West Coast of the United States is bracing for a wet winter,

as scientists issue dire warnings that

“the strongest El Nino in recorded history” has taken up residence in

the Pacific, bringing with it the

threat of heavy rains and floods. Already this December, Portland,

Oregon experienced its wettest day

ever as a monster storm dumped 4.75 inches of rain on the region

between Sunday, Dec. 8 and

Wednesday Dec. 9, 2015. (The average rainfall in Portland for the

month of December is 5.49 inches).

Widespread flooding, mud slides and traffic jams crippled the city,

and, as of Thursday, an estimated

17,000 residents were still without power.

What’s more, meteorologists say the worst may still be to come.

Although climatologists agree that no

one can predict with certainty how much rain the warm Pacific

waters will bring, forecasters are

warning West Coast residents to be prepared for higher than

average rainfall and potentially

devastating floods.

Why Get Flood Insurance?

Floods are a natural phenomenon that can occur anywhere in the

United States. Defined generally as

an event where a normally dry area is inundated with water or

mudflow, floods occur for numerous

reasons, including exceptionally heavy rains, tidal surges,

snowmelt, failed levees and powerful

storms. In drought-stricken areas or those that have been

devastated by fire, heavy rains sometimes

produce mudflow— a river of mud caused by large amounts of rainfall

mixing with dry, unprotected

earth.

Floods can be devastating, causing property damage, bodily injury and

even loss of life. According to

the National Flood Insurance Program, as little as 6 inches of

water can cause nearly $40,000 in damage

to an average 2,000 square-foot home.

What Is Flood Insurance?

Because homeowner’s insurance policies specifically exclude damage caused by flood or

mudflow, in

1968 Congress established the National Flood Insurance Program

to help homeowner’s and businesses

protect themselves from financial loss. Administered by the Federal Emergency Management Agency,

the National Flood Insurance Program works with private

insurance companies to offer flood insurance

to homeowners, business owners and renters who live in

“participating communities” that enforce

FEMA standards to reduce flood risk.

Rates are set nationally and are determined by many factors,

including the location, size and age of the

property to be insured. Additionally, communities that

participate in voluntary flood-risk management

strategies that exceed FEMA’s minimal requirements are eligible

for reduced rates based on the NFIP

Community Rating System. Under this system, high-ranking

communities can receive a rate reduction

of up to 45 percent.

As part of the NFIP, buildings with mortgages from federally

regulated or insured lenders that are

located in high-risk flood zones must have flood insurance. High-

risk zones are defined as those that

have a 25 percent chance of being damaged by flood during a 30-

year mortgage. However, many

floods occur in moderate or low-risk zones.

What Does Flood Insurance Cover?

Generally, flood insurance covers an insured building and

all building contents, including:

* The building and foundation

* Electrical and plumbing systems

* Furnaces, central air conditioning and water

heaters

* Refrigerators, stoves and built-in appliances such as

dishwashers and microwaves.

* Carpeting, paneling, wallboard, and built-in fixtures

such as cabinets and bookcases

* Window blinds

* Detached garages

Personal property is also covered by flood insurance,

including such items as:

* Clothing, furniture and electronics

* Portable appliances, such as air conditioners, microwaves

and portable dishwashers

* Washers and dryers

* Freezers (plus the cost of any spoiled food)

* Artwork and other valuables (up to $2,500)

The cost of clean-up and debris removal is included

as well.

What Does Flood Insurance Exclude?

Flood insurance provides limited coverage for enclosed areas

below ground level, including

basements, crawl spaces and other areas below an enclosed

building. Additionally, coverage is

excluded for:

* Damage caused by moisture, mildew or mold that the property

owner could have avoided

* Valuable papers such as stock certificates, currency

and coins

* Temporary housing and other living expenses

* Financial losses due to business interruption or loss

of use of the insured property

* Damage to cars or other motor vehicles

* Damage to the exterior fixtures of the property, such as swimming

pools, trees, shrubs, hot

tubs, patios and retaining walls

* Water damage due to events other than flooding, such as

broken pipes or sewer backup

Even if you don’t live in a high-risk flood zone, powerful storms and

other natural perils can put your

home or business at risk. In fact, according to the NFIP, 20 percent of claims for flood damage come

from property owners in communities where flood risk was

low or moderate. So, no matter where

you live, it’s a good idea to talk to an experienced agent to discuss

whether flood insurance is right for you.

We are available Monday through Friday from 9 a.m. to 6 p.m., so call 516-292-3780 to set up an

appointment for your insurance review. Or, if you prefer, request a free consultation online now, and

we will get back to you within one business day.

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