What you should know about flood insurance:

You've probably heard this horror story before — someone loses a home due to a flood and learns after the fact that their standard homeowner's policy doesn't cover flood damage.  We recently heard this exact same statement from a homeowner affected by the flooding right here in Kentucky over in Nicholas County. Homeowner policies don't cover flood-- For this reason, we thought we needed to get some good information out there to help you sort thru it all.

At Linville Insurance, we want you to be educated about all of the risks you may face - before a loss occurs - so you can determine what insurance coverage is appropriate. With all the flooding we see on the news these days, now is a good time to review your options.

 

Because very few companies offer flood insurance, the U.S. government created the National Flood Insurance Program (NFIP) in 1968. Available to homeowners, renters and business owners, this insurance often is required to obtain a mortgage in areas at high risk of flooding.   NFIP writes over 99% of all flood coverage and insurance companies administer the program on their behalf.  NFIP sets the rates, coverage terms and underwriting guidelines.  They also limit the amount of coverage you can buy.

Even if you don't live in a designated flood zone, you might want to look into a policy just for peace of mind.  In the last year, we've seen extensive flooding occur in areas that were NOT considered flood zones—the flooding that took place in Estill Co/Irvine, KY is a prime example.   According to the NFIP, nearly 25% of the program's claims occur in moderate- to low-risk areas. Check out the questions and answers below to help determine if flood insurance is right for you.

 

Is flood insurance available in my area?

To participate in the NFIP, a community must adopt and enforce a floodplain management ordinance with rules regarding construction in certain flood-prone areas. In exchange, the government makes flood insurance available within that community. Most communities in our area are eligible for flood insurance.  We're happy to help you find out if you're eligible-Just give us a call at 859-626-5252. You can also visit http://www.fema.gov/fema/csb.shtm.

 

What does it cover?

The NFIP provides coverage for both the structure and its contents. Coverage for contents is optional in some cases, so you may want to give us a call to discuss other coverage for your personal property.

Keep in mind that you typically can't purchase flood insurance and have it take effect the next day. There is usually a 30-day waiting period. (Exceptions to this rule apply, however, particularly when the insurance is required by a lender and is purchased during the process of securing a mortgage.) If you think you need flood insurance, don't wait to buy a policy!

 

What doesn't it cover?

Generally, government-issued flood insurance will not cover the following: Buildings entirely over water or principally below ground, gas and liquid storage tanks, animals, aircraft, wharves, piers, bulkheads, growing crops, shrubbery, land, roads, machinery or equipment in the open and most motor vehicles.

 

How much does it cost?

As with all insurance policies, the cost of flood insurance varies depending on your situation. If your home or business is in a high-risk area, such as a "special flood hazard area," your premium naturally will be higher than those in low- or moderate-risk zones. Premiums are based on how old the building is, how many floors it has, the location of its contents, your deductible and more. Renters insurance is typically less expensive, as renters generally insure their belongings and not the building. 

 

Where can I find more information?

As always, we are happy to help you determine your insurance needs. Stop by our office at Linville Insurance or give us a call at 859-626-5252. The NFIP website, at http://www.fema.gov/national-flood-insurance-program, has plenty of answers as well.