My homeowner insurance includes flooding, right?
WRONG!
Although general homeowners insurance policies cover internally-caused issues due to flooding like pipes bursting, externally-caused events like your nearby river cresting and flooding your home or broken water main will not be covered on your general policy. According to Pemco, 43% of homeowners and renters believe this common misconception, which can cause quite a rude awakening for those who only learn about this in their time of most need for it.
The following are common flood-type scenarios that are not covered by homeowners insurance:
- Heavy rains
- Canals gave way and flooded the area
- A broken water main (even if it is a pipe for your home)
- Excessive snow melt
So, what can you do? You have a couple options:
- Purchase private flood insurance
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- Flood insurance is the option to choose if your home is in an area deemed prone to flooding for one reason or another. Your home might be in a flood plain, inside a tsunami preparedness zone, or any number of other scenarios that may trigger a requirement or simply good judgement for flood insurance.
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- A ‘National Flood Insurance Program’ policy
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- An NFID policy can come in one of two forms
- Through a Direct Servicing Agent-This option applies if you live in one of the NFID’s participating communities
- Through private insurers through NFID’s ‘Write Your Own’ program.
- An NFID policy can come in one of two forms
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- Add a ‘water backup coverage endorsement’
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- A water backup coverage endorsement is a great option if your home is not located in an area that deems it necessary for flood insurance coverage, but you’re still looking for increased coverage than your general homeowners policy covers. One example under this scenario would be an exterior pipe bursting.
Remember, every homeowners insurance policy is different, and every home’s needs are different as well. Make sure you consult with a Basin Pacific Agent who can make an educated recommendation about your specific property before you purchase a policy that doesn’t properly cover your home.
Should you have any questions regarding your current coverage or want further information on these points, Basin Pacific Insurance is here for you. Contact us today at [email protected] and your agent will be in touch shortly. For more information on the types of homeowner coverage offered by Basin Pacific Insurance, click here.
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