By Gabe Wooldridge
Express Solutions Producer and Private Client Consultant
Spring showers are around the corner and this brings the potential for increased water exposure to many property owners. Water damage may wreak havoc on your home and possessions and it can occur when you least expect! There are three major aspects of the dreaded words WATER CLAIM and how it is or isn’t covered under your homeowner’s policy. This section will review flood and how insurance companies review this peril.
Many homeowners could be potentially impacted by flooding. The trends of sudden large storms in the US are more frequent now than in the last 105 years since they began recording storms — just look at the situation in California. Per the EPA statistics, “In recent years, a larger percentage of precipitation has come in the form of intense single-day. Nine of the top 10 extreme one-day precipitation events have occurred since 1990.” The intense increase in the amount of water in a short span of time is what causes many flash floods.
Unfortunately, MOST homeowners do not carry flood insurance even in regions in which floods are more prevalent. For example in Louisiana, 80% of the residents that had flood damage this August did not have flood Insurance! This is possibly one of the largest gaps and misunderstood aspects of property exposures. To put it simply, flood coverage is defined as water entering your home from outside of the home. The bad news is if water enters your home from the outside and causes damage and you do not have a separate flood policy there is NO coverage from your homeowners insurance.
The good news is that the United States government saw the extensive damage floods were causing Americans and created […]