Many people think that homeowners' insurance covers flood damage,
but it does NOT!
Condo or renter's insurance does not cover flood damage either!
About 30% of all flood damage happens in NON special Hazard zones, ( Zones B, C, and X, where most of us live. ) People living in these zones are eligible for a preferred risk policy, which is inexpensive!
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First, what is a flood?
Flood is described as surface water entering a building through a door, window, or other opening. An ice dam being pushed up over the shore of a beach or river is also flood damage! Flood damage can occur from heavy rain periods in a short amount of time, and rapid snow melting, especially if the ground is still frozen.
Sewer, drain, or sump well overflows are not considered flood damage. This would be sewer/drain backup or overflow coverage which is an option on most home insurance policies. A sink or toilet that overflows could also be covered by the same endorsement.
Hydrostatic water pressure. Water that seeps in through a crack or hole in the foundation is excluded by most insurance policies.
A burst/frozen water pipe would be covered by regular homeowners insurance and not by flood coverage!
Another misconception from many people is that they can count on Federal Disaster Assistance. However, most federal disaster assistance types are provided as loans with interest that must be repaid. This assistance is only offered upon the President's declaration of a major disaster, according to the Federal Emergency Management Agency (FEMA).
Another thing is that federal assistance may not cover all your expenses resulting from flood damage. And if that's the case, you will be looking at paying back the loan plus interest and possibly out-of-pocket expenses that were not covered. Nevertheless, flood insurance will cover flood losses regardless if you have federal assistance.
For more information about flood insurance, contact Bronson Insurance Services today. Located in Oak Creek, WI, Bronson Insurance Services has been established and serviced Wisconsin and surrounding areas for around 20 years. If you live in Wisconsin and need reliable consultation, this agency is the one to turn to. Contact us today!
