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Record-breaking floodwaters have emerged after one of the most destructive storms the US has known. In fact, in the southeast areas of the Lone Star State, most homeowners don’t even have flood insurance. And who can blame them? There was never any precedent in the area. Although hail and wind storms are a constant concern for property and business owners, no one imagined that rainwater would contribute to the massive damage as it has occurred and spread across the country in recent days. Certainly not home mortgage companies, as they don’t even require it from borrowers!
But as the death toll rises and those forced to take shelter from their homes, one thing is clear. When things finally settle down, homeowners and those in the commercial sector will have to deal with the huge losses and damages on their own due to the lack of relevant coverage.
The facts are as uncomfortable for homeowners without flood coverage as they are painful: A standard home insurance policy does not protect against floods and their related damages. The insurance industry emphasizes in no uncertain terms that compensation is provided only to those who had the foresight to obtain flood insurance in the event of water damage caused by atmospheric conditions such as hurricanes, tropical storms or other inclement weather .
A little history about flood insurance:
The year was 1968 when the US Congress outlined its flood program. Designed to assist home and business property owners from the financial loss of devastating floods, its policies are offered in all communities that are included in the rules of participation.
Flood coverage protects property owners or renters against building damage and contents damage.
This includes the following:
• Structure, as well as the foundation of the building
• Electrical and plumbing systems
• Central air conditioner, furnace, water heater
• Refrigerators, stoves, and any installed appliances, such as dishwashers
• Carpet that has been installed over a bare floor
• Personal clothing and electronics
• drapery
• Portable heaters and air conditioners
• Carpeting other than those included in the coverage of the property
• Washers and Dryers
Generally, flood compensation claims include:
• Replacement Cost Value: Up to eighty percent of the amount needed to replace property damage in a single family, primary residence
And
• Actual cost value – replacement cost at the time of loss less physical depreciation
Note: The Flood Program always uses the actual cost value of personal property to determine reimbursement.
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