Flooding is the single most common weather-related natural disaster. According to the National Severe Storms Laboratory (NSSL), floods occur in every U.S. state and territory and take more lives each year than tornados, hurricanes, or lightening. Not only are they dangerous, but floods can also cause tremendous damage to buildings, cars, and other valuable possessions in a very short amount of time. In fact, FEMA reports that just one inch of floodwater can cause up to $25,000 in damage.
BBB recommends the following tips to protect your family’s financial security by purchasing flood insurance.
Look up your address in FEMA’s Flood Map Service Center to find out if you live or work in an area that is at high risk for flooding.
Speak with your current homeowners', renters', or auto insurance companies to find out if they offer flood insurance. Homeowners insurance policies generally do not cover flood damage, so you’ll need to purchase a flood policy separately.
Discuss policies with an agent before you purchase one to make sure you get the right coverage and the correct amount of coverage. Remember that flood insurance generally covers damage from water that was on the ground before entering your home, while homeowners’ insurance covers other kinds of water damage, such as damage from a broken pipe or leaky roof. Keep in mind that if flood insurance isn’t mandatory where you live, there is typically a 30-day waiting period for a National Flood Insurance Program policy to go into effect.
Take an inventory of all your household valuables and appliances by documenting them with photos and videos. Keep your images in a safe place – they will be necessary in the event you need to file a claim. Keep important paperwork, such as passports, birth certificates, medical records, and deeds of ownership safe by storing them in a waterproof safety deposit box. You may want to store important sentimental items, like family photos, in a similar way. Keep such items in a central place where you can easily take them with you if you need to evacuate.
Understand how filing a claim works. There are steps to take when filing a claim. First, start your claim by reporting flood damage to your insurance agent promptly. Next, document your loss and begin clean up. Finally, meet with your adjuster and receive payment. See FEMA’s guide on how to file a flood insurance claim for more details on each step.
