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Insurance problems and cures

Home Insurance – Flood Insurance

with 2 comments

Homeowners Insurance generally doesn’t cover flood damage, or most other “ground water” damage.

The National Flood Insurance Program (NFIP) defines flood as covering two or more acres or two or more contiguous properties.  So it doesn’t have to be the classic picture of the bursting dam.

To get flood coverage, go to an agent representing the NFIP.  If your house or business is not in an active flood zone, flood insurance is not very expensive compared to the value insured.  If it is in a flood zone, it is expensive but your bank will require it.

For homes, insurance for back-up of sewers and drains could be less than $100 and covers just what it says, water coming back into the house through sewers and drains.  That could happen in a situation where there was no flood by the definition of the NFIP.


Written by gbwinsurance

December 15, 2009 at 8:23 pm

Posted in Insurance

Tagged with ,

2 Responses

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  1. What happens when something happens that is covered, like a hurricane, at the same time as a flood?


    January 9, 2010 at 2:00 pm

    • That’s concurrent causation and it’s a problem in insurance loss settlement. If you have the National Flood Insurance Program (NFIP) covering the flood and a standard Homeowners Insurance company coveing the home (for wind in this case), there can be arguments about which policy covered what part of the damage. At least you will have coverage. If you don’t have flood insurance, you will be arguing with the insurance company about how much they will pay and you will be out of pocket for the flood portion.


      January 11, 2010 at 3:22 pm

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