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Seven myths about flood insurance coverage

Floods happen very usually in the USA. In recent times, we have seen total cities underwater in spring floods alongside the Mississippi River. Nonetheless, floods can happen in surprising areas and for surprising causes. Congress created the Nationwide Flood Insurance coverage Program (NFIP) to supply insurance coverage safety for the chance of flooding.

A normal house owner coverage (HO-3) defines flooding as:

“…a normal and non permanent situation of the partial or full inundation of dry land areas, normally for the next causes:
1. Inland water flooding or tides;
2. Irregular or speedy accumulation or run-off of floor water from any supply. or
3. Mudslides.

Bear in mind Hurricane Katrina? Hurricane winds blew floodwaters in areas that had not skilled flooding earlier than. The insurance coverage business denied 1000’s of claims, and attributed the damages to the floods. The claims of 1000’s of landlords who weren’t close to the flood plain have been denied as a result of they didn’t have flood insurance coverage.

So, listed below are seven widespread myths about flood insurance coverage.

Fable 1: Industrial property insurance coverage insurance policies cowl owners and renters for flood injury.

No, owners, renters and business property insurance coverage insurance policies don’t cowl flooding. An NFIP is a separate coverage that covers flood injury to a house or enterprise. Content material protection will also be added to a flood coverage. Insurance policies can be found to landlords in addition to renters of actual property, be it properties or companies.

Fable #2: Solely owners and enterprise house owners should purchase flood insurance policies.

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