Know the flood insurance you need. Which policy covers what type of damage?
With over 9 inches of rain falling in the Dallas-Fort Worth area Monday causing flooding in several neighborhoods, many residents are still sifting through the damage.
Flooding can be costly. Just an inch of water can tally up to $25,000 in repairs, according to the Federal Emergency Management Agency.
The National Weather Service reported Monday that the 9.19 inches of rain recorded at Dallas-Fort Worth International Airport was the second wettest 24-hour period ever. Sunday night to Monday’s rainfall totals were only 0.38 inches behind the wettest 24-hour period recorded in 1932 at 9.57 inches.
In the U.S. alone, flooding kills more people every year than tornadoes, hurricanes or lighting, according to the National Severe Storms Laboratory..
The question many residents have is what will my insurance cover? Here are some things to consider:
What should I know about buying flood insurance?
Flood insurance can either be purchased from private companies or through the federal government’s National Flood Insurance Program.
When it comes to purchasing flood insurance, the Better Business Bureau has laid out a few tips, whether you purchase from a private company or government carriers:
Know your area — To find out if the area you live or work in is at high risk of flooding, take a look at FEMA’s flood map service center. You might be required to have flood insurance if living in a high-risk area.
Speak with your insurance agent — Start by checking with your insurance carrier to find out if they provide flood insurance. Homeowners insurance policies usually do not cover flood damage.
Find a flood insurance provider — To find a provider through the National Flood Insurance Program, visit their website. Or you can find a provider through the BBB.
Purchasing flood insurance — Discuss policies with an insurance agent before purchasing to make sure you select the right amount of coverage. Flood insurance generally covers damage from rising groundwater, while homeowners insurance typically covers water damage from a broken pipe or leaky roof.
Take an inventory — Take stock of household valuables, documenting them with photos and videos for a future claim.
Store important documents — Documents such as passports, birth certificates, medical records and ownership deeds should be stored in a waterproof container or safety deposit box.
Understand claim filing — When filing a claim, start by reporting flood damage to an insurance agent. Document the damage, before beginning cleanup. Finally, meet with an adjuster and receive payment.
Work with insurance company on damage — If you have to deal with flooding damage or subsequent mold issues, talk to your insurance agent for recommendations on reliable water damage restoration companies. Find out what kind of services your policy provides.
What does flood insurance cover?
A National Flood Insurance Program policy covers direct physical losses to structures and belongings. The NFIP offers two types of coverage — building and contents.
Building coverage includes:
Electrical and plumbing systems, along with furnaces and water heaters.
Refrigerators, cooking stoves and dishwashers.
Permanently installed carpeting, cabinets, paneling and bookcases.
Window blinds, foundation walls, anchorage systems and staircases.
Detached garages, fuel tanks, well water tanks and pumps and solar energy equipment.
Contents coverage with NFIP includes:
Personal belongings such as clothing, furniture and electronics equipment.
Curtains, washer, dryer and microwave oven.
Portable and widow air conditioners.
Carpets not included in building coverage, such as throw rugs over wood floors.
Valuable items such as original artwork and furs up to $2,500.
Here’s what is not covered by the two NFIP plans:
Temporary housing and additional living expenses incurred while the building is being repaired or if the dwelling is inhabitable.
Property outside of an insured building such as landscaping, wells, septic system, decks and patios, fences, seawalls, hot tubs and swimming pools.
Any financial losses caused by business interruption.
Currency, precious metals, stock certificates and other valuable documents.
Cars and most self-propelled vehicles, including their parts.
Personal property kept in basements.
What should I know about filing an insurance claim?
In the event of flooding or groundwater damage, it’s time to file with your insurance provider. Here’s a few tips from the Better Business Bureau when it comes to filing a claim:
Contact insurance company immediately — Contacting quickly helps get the claim process going and might also mean you’re eligible for loss-of-use benefits. It also qualifies you to be reimbursed for hotel costs, food and other living expenses while away from home. Document all insurance company or adjuster conversations and get any reimbursement promises in writing.
Beware of contractors who claim to be insurance specialists — Make sure to thoroughly research your contractor before you allow them to deal with your insurance company. Seek approval of repairs.
Document the damage thoroughly — Take pictures and videos of property and possessions, by going from room to room and make a detailed account.
Make temporary repairs to limit further damage — You could be liable for further damage that occurs to your home or business after a storm. Boarding up broken windows or throwing a tarp over a leaky roof can help limit further damage. Beware of contractors who may try to offer these services for ah fee.
Do not make any permanent repairs until approval from insurance company — Make sure your insurance company will reimburse you for the cost of the repair. The insurance company might not fully reimburse you if repairs are made without prior authorization.
Do not hand over an insurance check to a contractor for repairs prior to work starting — Never give more than one-third of the job price up front and make sure your insurance company has approved all repairs before handing over final payment to the contractor.
You might qualify for additional assistance if insurances doesn’t cover all loses — Check with FEMA for more information and to see if you qualify.
What should I know about choosing a company for repairs or clean up?
Anytime there is a disastrous weather event, unscrupulous contractors will come out of the woodwork to offer their services. The Better Business Bureau has a few tips when choosing a company:
Work with your insurance company — Ask your insurance agent to recommend a reliable and reputable water damage restoration company. Determine what your insurance policy covers and how to file a claim.
Try to mitigate further damage — Dry out and disinfect impacted areas as soon as possible to help prevent mold from growing. For wet carpet or rugs, try running fans and dehumidifiers.
Check the company’s history with the BBB — You can review the company’s complaint history and other factors on the BBB website.
Verify the company’s license — Confirm the contractor is properly licensed, insured and registered for the work they will be doing. For example, vacuuming up water and drying out a room may not need a license, but tearing out cabinets or a wall may require one.
Make sure the business has experience in mold cleanup — Ask for references and contact them for more information on the company’s work with mold.
Obtain at least three bids — Do not hire the first business that contacts you or offers the lowest bid. Evaluate the services and offerings of at least three businesses before making a decision.
Understand assignment of benefit contracts — Make sure to thoroughly research thecontractor before you allow them to deal with your insurance company. Seek approval of the repairs.
Be wary of contractors going door-to-door using scare tactics — Obtain a contract that specifies the work to be done, the price breakdown for labor and materials and an agreed upon timeline. Never feel pressured into signing on the spot and seek at least three bids before making a decision.
Beware of rental scams — If you are displaced from your home, beware of rental scams where the photo and description of a property is posted online and asks for first month rent deposit.
