After one of the most destructive hurricanes the US has ever seen, record-breaking flood waters emerged. The majority of flood insurance is not available in the South East areas of the state. They are not wrong, and who could blame them? There was no precedent in the area. Even though hail and wind storms are a concern for business and property owners, nobody imagined that rainwaters would cause such severe damage as the ones suffered in recent days. They don’t even require it of borrowers, but surely not the home mortgage lenders!
One thing is certain now that the death toll has risen and people have been forced from their homes in search of shelter, there is one thing. Home owners and commercial workers will be responsible for the massive losses and damages when things settle down.
Flood coverage is not available to homeowners who do not have flood insurance. Standard home insurance does nothing to protect against floods and any damage that may result. Insurance companies stress that only those who were able to purchase flood insurance to protect against water damage caused by weather conditions like hurricanes, tropical storms or other inclement weather will be compensated.
A brief history of Flood insurance
1968 was the year that the US Congress created its flood program. The policies are designed to assist property owners in their homes and businesses from the financial ruin of a flood.
Flood coverage protects property owners/renters from contents and building damage.
The following are included:
• The structure, as well as building foundation
• Electric and plumbing systems
• Central air conditioner, furnace, water heater
• Refrigerator, stoves, and any installed appliances, like a dishwasher
• Carpet that has been installed over bare flooring
• Personal clothing and electronics
• Transportable heaters and air conditioners
• Carpeting other than what is included in the property coverage
• Washers and dryers
Flood recompense claims usually include:
• Replacement Cost Value: up to eighty percent of the amount needed to replace property damages in a single-family, primary residence
• Actual Cost Value – replacement costs at the time of loss reduced by physical depreciation
Notice: Personal property will be reimbursed only if the actual cost value is used in flood programs.