Flood Insurance

Flood Insurance

Things to consider

Homeowners and other types of home insurance does not cover flood. It is excluded on Named Exclusion Policies, and not named as a covered peril on Named Peril Policies. Flood is defined as damage caused by rising water, including water blown by wind and storm surge. Every home is in a "flood zone". Some, such as the home shown above, are located in an area known as a "Special Flood Hazard Area", designated by an A or V, such as A, A16, AE, V22, and so on. Homes in these areas are more likely to suffer flooding, and definitely need flood insurance. If they have a mortgage, the mortgage company will require that these owners purchase flood insurance on the dwelling. Other properties may be located in areas where flooding is less likely, designated by a B, C, or X. These codes are assigned by the National Flood Insurance Program (NFIP), and are based on the relative likelihood of flooding to occur. Flood insurance rules and rates are set by the Federal Government, and are the same with every company. If your home lies in a Special Flood Hazard Area, the rate will be based on the type of zone, type of construction, and how high your home is above grade or above the "Base Flood Elevation"--the higher you are, the lower the cost. Homes built after the date in which the community joined the National Flood Insurance Program (NFIP), or that have had major renovations after that date, are known as Post-Firm, and are required to have been built at or above the Base Flood Elevation, and using more stringent construction standards. Houses built before the community joined the NFIP, known as Pre-Firm, can still have flood insurance, although usually at a higher price. Houses located in B, C or X zones can qualify for a Preferred Risk Policy at a lower price, which is between $150 and $317 per year, depending on the amount of coverage they need.

Homes in B, C or X zones can still flood, as we have seen here in Coastal Georgia and Middle and Southwest Georgia over the past several years. A common cause of flooding in these areas is when drainage ditches become clogged with debris, forming a dam, and causing water to back up into a neighborhood. About half of our customers who have flooded over the years were not in A or V zones, and some had not purchased flood insurance. One customer thought they did not need flood insurance. During a time of heavy rain, water ran through their neighborhood, and carried debris into a nearby drainage ditch, which then plugged up, causing water to back up throughout the neighborhood. This customer got about 1 to 2 inches of water into their house, causing $30,000 of uninsured damage. All the doors, trim, flooring, cabinetry, and sheetrock up about 4 feet had to be replaced, as well as some of their plumbing and wiring. For a premium of about $250 per year, they have been insured against this type of event ever since.

Points to Remember

Just because your mortgage company required that you have flood coverage, don't assume that both house and contents are covered. Mortgage companies are only concerned with insuring their collateral, which is the dwelling. Many people with flood policies do not have any coverage for personal property, but it can be added to your existing flood policy. Most mortgage companies only require flood coverage sufficient to cover the loan balance, and that may not be enough to replace your house if it is damaged or destroyed by flood. As with all types of insurance, you should review your flood policy periodically to make sure it remains adequate. Maximum dwelling coverage with Federal Flood Insurance is $250,000 and contents are capped at $100,000, although many agents have Supplemental Flood Insurance available, allowing owners to buy additional flood coverage if needed.

The National Flood Insurance Program requires a 30-day waiting period from the time you buy a flood policy until coverage begins. If you are thinking about buying flood insurance in case of a hurricane, you need to do it well before the beginning of hurricane season, which is traditionally from early June through late November.

If you are Pre-Firm, Make Sure You Remain Pre-Firm

If your house is pre-firm, and you are considering making major additions or renovations, it is very important to check with the local building inspector to make sure your house stays in compliance with all flood regulations (be sure to get their certification in writing). We have seen several examples recently in which pre-firm homes underwent extensive additions or renovations, and the house was determined by NFIP to not be in compliance. Flood insurance rates in those cases can be very expensive, and can greatly affect the marketability of your home. Rates for one example were over $5,000 per year. In another example, a house that was under contract for over $1,000,000, had the deal fall through because the flood rates would have been $27,000 per year. Although both these examples were for houses in V-zones, which is the highest-risk type of area, rates could be very significant in A zones are well, if the house is deemed to be post-firm and not in compliance.

How can I prepare for disaster from Flooding

Flooding may be localized or catastrophic. It may be part of a hurricane, brutal thunderstorm, sudden thaw or other widespread disaster. Many floods arrive with advance warning so you can prepare. Weather forecasts will indicate that storms are on the way or that nearby rivers are rising because of a heavy run-off upstream. Depending on how much time you have, there are steps you can take to minimize damage.

Preparation tips

Use water-resistant building materials in areas below the base flood elevation.
Leave rooms unfinished that are below base flood elevation.
Install back-flow valves or standpipes on sewer lines to prevent back-up.
Raise, anchor or shield all equipment that is in an area below base flood elevation.
Install and maintain a sump pump system.
Use native plants and vegetation in your landscape to combat erosion.
Become familiar with the emergency flood plan for your area.
Prepare an emergency supplies kit including: three day water supply, three day supply of non-perishable food with manual can-opener, disposable plates, cups and utensils, first aid kit including prescription medications, battery-powered radio, flashlight and extra batteries, personal hygiene items and any essential items for individual family members.

Safety tips

Using a battery-powered radio listen for emergency instructions.
Turn off the electricity and natural gas at the main valves.
Relocate papers, valuables and irreplaceable items to upper floors or higher elevations.
Sanitize bathtubs, sinks and plastic bottles with bleach and fill with clean water.
Tie down or relocate all outdoor equipment indoors.
Respond immediately when instructed to evacuate.
If the water starts to rise inside your home before you can leave, retreat to upper floors and if necessary to the roof - take dry clothing, flashlight and battery-powered radio. DON'T try to swim to safety, wait for help to arrive.
Don't drive or walk through floodwaters, find an alternate route if you come upon a flooded road. More people drown in their cars than anywhere else during a flood.
When walking, remember that as little as six inches of moving water can knock you down.
Watch for downed power lines, since electrocution is a major cause of death during a flood.
Be aware that snakes, rodents and other wild animals may seek shelter in your house during a flood.

Recovery tips

While you’re waiting to hear from the claim representative, you can begin the difficult process of cleaning up. But, proceed cautiously. There can be more damage than meets the eye, and moving too quickly may make the situation worse.
Contact your insurance agent or company right away.
If your property suffered damage from wind, hail, fire, etc. which may be covered by your Homeowners policy, report the damage at the same time that you report your flood loss. This is why it is best to have your homeowners and flood insurance with the same company.
Additionally, if your vehicle was damaged due to perils covered by the comprehensive portion of your auto policy, report that too.
The National Flood Insurance Program requires that all payments include your mortgage company as a payee, so verify the name of your current mortgage company with your claim representative.
Turn off the electricity and gas if it can be done safely and without walking through water.
Watch for snakes, nails and dangerous debris. Do not walk through flowing water, and be aware that steps and floors may be slippery.
Cover holes in the roof, walls, or windows with boards, tarp, or plastic sheeting to prevent additional damage.
Walk around the outside of a flooded building and check for gas leaks, loose power lines and structural damage before entering. Open the door slowly, sticking indicates that the ceiling may be ready to fall. Stand clear and force the door open, wait for a few minutes to determine if it's safe to enter.
To release water from the ceiling, use a nail on the end of a stick to poke a small hole at the edge of the sag to release the water. Don't poke at the center of the sag since the ceiling could collapse. Repeat this process working toward the center of the sag until all of the water drains.
Test for water trapped in walls by removing the baseboard and poking small holes in the wallboard about two inches above the floor. If water drains, cut or drill holes large enough for it to flow freely.
With the power turned off, unplug appliances and lamps. Remove light bulbs, wet switches and outlet plates.
Drain the basement slowly, using a pump or by hand bailing. If there is still floodwater outside the building, the pressure from the water inside may be preventing the walls from collapsing. Remove two to three feet of water at a time and mark the new water level. If the water does not rise above the mark by the next day, it should be safe to repeat this process until all the water is drained.
Take photos for your records.
Remove as much debris and mud as possible.
Open (do not force) windows, doors, cabinets and drawers to help with the drying process.
Do not use gas lanterns or open flames, and do not smoke, since there may be explosive gas in the air.
Wash and disinfect the entire flooded area including air ducts, outlets, wall switches, light sockets, furniture and other contents.
Make an inventory list of all damaged contents. Keep in mind that not all contents are destroyed by water but may be able to be cleaned and disinfected.
Remove floor coverings from flooded areas. Keep samples of any carpet/upholstery for your claim adjuster.
Do not drink the water until it is declared safe. Boil water for drinking and food preparation vigorously for five minutes.

Damage predictions if a Category 3 Hurricane were to hit near the south end of Ossabaw Island.

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