Flood insurance is generally available to people in communities that participate in the National Flood Insurance Program (NFIP). Flood insurance policies can be purchased through local insurance agents by homeowners, business owners and renters who want protection for their homes, buildings and belongings. (Landlords can buy separate flood insurance policies to help protect the home.)
WHAT DOES FLOOD INSURANCE COVER?
So, what does a flood policy help protect? FEMA says you can purchase coverage to help protect your home, your personal belongings, or both. Here are some of the basics for these two types of coverage:
Building property coverage- What it helps protect: The physical structure of your home and its foundation; plumbing and electrical systems; central air and heating systems; attached bookcases, cabinets and paneling; and a detached garage (other detached structures need their own policy).
- How it typically pays out: Replacement cost basis (what it would take to repair the home in today's dollars) for a primary residence and actual cash value (which factors in depreciation) for a vacation home.
- Maximum coverage limit: $250,000
- What it helps protect: Clothing, furniture and electronics; curtains; some portable appliances; freezers and the foods within them; and certain valuables, like art (up to a specified limit).
- How it typically pays out: Actual cash value basis (takes depreciation into account).
- Maximum coverage limit: $100,000
HOW DO I PURCHASE FLOOD INSURANCE?
A local insurance agent can help you purchase a flood insurance policy from the NFIP.
You'll typically need to wait 30 days for your policy to go into effect, though there are some exceptions. For instance, if you purchase a flood insurance policy at the same time you take out a mortgage, the insurance may go into effect immediately, according to FEMA.
WHAT'S NOT COVERED BY FLOOD INSURANCE?
Equally important is knowing what's not covered by flood insurance. Here are a few examples of the types of property and expenses that fall outside the scope of a basic flood insurance policy, according to the NFIP:
- Moisture or mold/mildew damage that "could have been avoided by the homeowner"
- Currency, precious metals and paper valuables, like stock certificates
- Outdoor property such as decks, fences, patios, landscaping, wells and septic systems, and hot tubs and pools
- Living expenses, like temporary housing (if flood damage deems your home uninhabitable).
- Cars and other self-propelled vehicles (but your auto insurance may offer some protection for your car if you have comprehensive coverage).
In addition, flood insurance provides limited, if any, coverage for below-ground rooms like crawl spaces and basements, and their contents, the NFIP says. Some items in these spaces (like the furnace) are typically included under building coverage. Others (like the washer/dryer) are usually covered under personal contents coverage. And some items ─ like your personal effects ─ may not be covered at all when they're kept in below-ground rooms.
Talk to an agent to help make sure you're clear about the coverage details, exclusions and limitations of a flood insurance policy and to help you make the right choices for your situation.
Of course, you should also remember that a flood isn't the only potential source of water damage to a home. That's why, in addition to understanding the potential benefits of flood insurance, you should also review the coverages offered by your homeowners insurance policy.
Armed with the knowledge and insurance coverages that are right for you, you'll go a long way toward protecting your home against water damage.
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What to consider when choosing a fire and damage restoration company
Certified experts
It is imperative to make certain that the company in question has all the required state and local certifications to complete the restoration job. These certifications should also be up-to-date.
• Certification: Look for credentials from the Institute of Inspection, Cleaning and Restoration Certification, also known as the IICRC, for well-trained fire and water damage experts.
• Sub-certifications: The IICRC has additional specializations such as mold remediation or structural and commercial Drying. Ask the company for details about their sub-certifications.
• Restoration vs. reconstruction: Note that the IICRC refers to restoration, not reconstruction. If the damage is to severe that contractors are required to partially or completely rebuild/reconstruct properties, make sure that they have all the proper local licenses and certifications necessary.
Experience
Every disaster is unique and requires the utmost care. If a company begins operating from the wrong starting assumptions, it can prolong or completely derail the restoration project unnecessarily.
• Relevant experience: Make sure that the company providing restoration has dealt with many previous situations that are similar to the current task at hand. For example, standing water from a flood could become contaminated with chemicals or substances that make it a biohazard. Make sure the company knows what they are dealing with before they come out to avoid added confusion that slows down the job.
• Comprehensive evaluations: Don't hold back any information. Even details that don't seem to be significant initially can greatly impact the company's professional evaluation of the restoration requirements or the extent of structural damage.
Asset protection
Different kinds of materials - such as furniture, computers, floors, etc. - require different treatments under very specific timetables.
• High-priority assets: Decide which assets have the highest priority and then look for the company that specializes in that particular area.
• Practicality: Replacing property or recreating data may be less expensive than restoration. Don't compromise your practicality.
• Pre-inspection reports: Some types of leases require a pre-inspection report by qualified restoration personnel to establish insurability levels.
Time to recovery
Hours, and sometimes minutes, can make all the difference in what is recoverable. Make sure the company will be ready the moment disaster strikes.
• Rapid response: The first few hours after a disaster can make all the difference in terms of what is recoverable. Look for rapid response times. Also critical, is advice on what to do immediately and what needs attention within the first 24 hours.
• Schedules: Look for a company that can give a full, detailed schedule of steps that they will need to perform before an estimated completion date.
• Variable costs: Be prepared for costs to vary greatly based on factors that aren't obvious at first, such as structural damage and the extent of smoke damage.
Storage facilities
Some restoration companies offer storage facilities. Find out how much space the company has to house your undamaged assets and what their storage rates are.
• Storage conditions: Make sure that storage facilities are nearby and adequate in terms of factors like temperature control and security.
• Packing services: Ask if they provide packing services, which means that they can thoroughly clean property before packing it up and putting it into the company's storage facility.
• Record keeping: Make sure to take photographic records of the condition of your property before it goes into storage.
Referrals
Ask for names of commercial or governmental agencies that the company has worked for and look for referrals.
• Referral limitations: Don't discount a company just because its referrals aren't perfect. Some items simply aren't restorable, and that fact creates disappointment.