A Flood is one of the most destructive natural disasters that causes billions in losses and disrupting thousands of people’s lives every year. While it is a common concern for those who live near streams and rivers, all homes can be victim on floods. When it comes to flood insurance, it is important to know and understand what it is and what is covered. Many think that flood insurance is necessary when they live near water and there is a possibility that the body of water could overflow causing water damage to their home. This is far from the truth. Floods are defined as water that enters your home from the outside. This is not to be confused with plumbing related issues or a leaky roof. Another issue altogether is sewer backup which may not be covered depending on what caused the problem.
Let’s take a closer look at these policies:
A flood insurance policy covers your property and contents from damages that occur when outside water enters the home. For instance, a heavy rainstorm, a clogged street drain or a hurricane that backs up streams and rivers.
The federal government offers coverage through the National Flood Insurance Program at an average cost of about $700 per year. But premiums vary depending on your property’s flood risk. The following is covered according to the National Flood Insurance Program:
- The insured building and its foundation.
- Electrical and plumbing systems.
- Central air-conditioning equipment, furnaces, and water heaters.
- Refrigerators, cooking stoves, and built-in appliances such as dishwashers.
- Permanently installed carpeting over unfinished flooring.
- Permanently installed paneling, wallboard, bookcases, and cabinets.
- Window blinds.
- Detached garages (up to 10 percent of building property coverage; other than garages, detached buildings require a separate building property policy).
- Debris removal.
Personal Contents Property
- Personal belongings, such as clothing, furniture, and electronic equipment.
- Portable and window air-conditioners.
- Portable microwave ovens and portable dishwashers.
- Carpets that are not included in building coverage.
- Clothing washers and dryers.
- Food freezers and the food in them.
- Certain valuable items such as original artwork and furs (up to $2,500).
Be sure to discuss contents coverage with your agent to ensure you have enough coverage. The price of the policy will be largely determined by how valuable your items are and how much coverage you need.
Water & Sewer Backup Coverage:
Sewage backup insurance is not included with a standard home insurance policy as I unfortunately found out the hard way. Shortly after we bought our home our sewage line backed up all over our finished basement. I called to report what happened so we could start the clean up process only to find that we were not covered. It is a separate insurance that you need in addition to your home insurance. I added it in case it happened again but it didn’t help me that first time. Believe it or not this is a somewhat common ocurrence.
The cost always varies, but typically it will run you under $100 for a sewer backup endorsement. Be sure to talk to your agent about the different policy options.
You should discuss with your agent how much coverage you should purchase, such as $10,000 or $15,000. Think about how much the cost of cleanup and damage would be if you did have a backup. Replacing carpets, drywall, items that need replaced for example.
We understand insurance is confusing, so if you still have questions, feel free to call one of our licensed agents and ask to speak about flood or sewage backup coverage options.
If you have questions about your home, auto or commercial insurance, call the insurance agents at Walbeck Insurance Agency in Homer City Pa. We’re right in the middle of the neighborhoods of Indiana Pa, and Blairsville PA. We have years of insurance experience and can help you insure everything from your home to your auto or business Insurance.