Donna Kozik
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Donna@DonnaKozik.com
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Do You Need Flood Insurance?

One of the enduring lessons of the recent hurricane tragedies is that many people cannot afford to be without flood insurance. But how do you know if you’re one of them? 

First of all, it’s important to realize that ERIE homeowner’s insurance is not flood insurance. In fact, the biggest misconception consumers have is that regular homeowner’s insurance covers damage done by floods or rising waters. It does not. “Literally all homeowner’s policies exclude flood,” said Terry McConnell, Vice President, Claims. “ERIE does not write any type of flood insurance for homeowners.”

When determining whether or not you need flood insurance, it’s a question of location, location, location. If it’s been shown that flooding is strong possibility in your community, your area will most likely participate in the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP).  

To find out whether you do live in a place that is prone to flooding, ask your insurance agent, city planning office or call an NFIP representative at 800-358-9616. If you live in a rural area or one where elevations vary greatly, meaning your home may be in a flood plane while your neighbor’s is not, visit the flood map section of www.fema.gov. The section will give you information about obtaining detailed flood maps for your specific area.

Buying Flood Protection

What if the research shows that flood insurance is a good idea? Then the next question is how much coverage you need—or will be able to receive.

Most flood insurance policies provide limited coverage of $250,000 for a home and $100,000 for its contents. The NFIP encourages consumers to get both building and content coverage. For the maximum residential coverage, flood insurance premiums can range between $489 and $1,150, depending on what kind of flood zone you live in. For maximum content coverage, premiums range between $244 and more than $700.

It is important to understand that while most homeowner’s insurance is set up to get your home and belongings back to their original state before the loss, flood insurance is designed to simply get you back on your feet—it’s not as comprehensive as most homeowner’s policies.

For instance, flood insurance doesn’t cover basement improvements like walls, floors or ceilings and personal belongings that are kept in the basement. But the insurance does usually cover clothes washers and dryers, food freezers and the food in them. It also covers water tanks, oil tanks, furnaces, stairways, unpainted drywall and sheet rock walls and ceilings, including fiberglass insulation. If you do purchase flood insurance, study your policy thoroughly so there will be no surprises.

Since it may take some time before a flood insurance policy payment arrives, it’s a good idea to have some liquid funds available to see you through for a time. Also, flood insurance policies have at least a 30-day waiting period before they take effect, so if you’re thinking about it for the spring, start your research now.