Floods can occur anytime and anywhere. In fact, they are the number one disaster in the United States. One of the most important things you can do to protect your possessions and assets is to purchase flood insurance. Here are three common flood insurance misconceptions, and the truths you should know:
Misconception: Homeowners insurance covers flood damage.
Truth: A standard home, condo, or renter's insurance policy does not cover flood damage. To be protected in the event of a flood, you must purchase flood insurance. Homeowners Insurance may cover water damage, such as a hole in your roof or pipe leak but will not cover flood-inducing risks such as storm surge or torrential rainfall. You would need to purchase flood insurance to protect your home from flood losses.
In the aftermath of Hurricane Katrina in 2005, this fact gained publicity when thousands of homeowners submitted claims to their insurance providers and learned the damage would not be covered because it had been caused by a flood. The debate back then was the damage was caused by wind and not water. An easy rule to remember is, flood is damage from the floor, up and wind is damage from the roof, down. It is important to speak to your agent about your coverage to make sure you have everything you could possibly need to be protected.
Misconception: You must live in a high-risk flood plain to purchase flood insurance.
Truth: Every home, especially in Florida, is at some level of risk of flooding. Everyone should obtain flood insurance, regardless of their home's level of risk. It only takes one inch of flood water to produce thousands of dollars in damages. According to FEMA, roughly 25% of all flood claims come from moderate to low risk areas.
Misconception: Flood insurance can only be purchased through the NFIP.
Truth: Flood Insurance can also be purchased through private carriers, like Edison Insurance Company. Edison offers our policyholders flood coverage which is currently not offered through the NFIP; through a certified flood endorsement. Our flood endorsement is designed to cover your personal possessions to your selected coverage amount and eliminates the need for a standalone flood insurance policy. For more information, or to see if you are eligible for flood insurance with Edison Insurance Company, speak to your agent today.
The safety of you and your family is Edison Insurance Company's top priority. Our mission is to provide quality coverage at competitive rates while providing exceptional service. For more information on homeowners insurance in Florida, or to get a quote, call us at 866-568-8922.