Warning! - Your Homeowners Insurance Doesn't Cover a Flood Loss!

All homeowners throughout the land have insurance that covers their homes. If you have a mortgage on your home, you have no choice. The mortgage holder wants to be protected and will insist you have enough insurance to cover their investment. Of course, even if you didn't have a mortgage, why would you not want homeowner's insurance?

A good homeowner's policy will cover many things including fire, theft, vandalism, and damage caused by many disasters. However, and this is a big however, your policy will not cover damage caused by flooding. Oops, since flooding is the number one natural disaster, we have a problem.

Many people think that a hurricane or other tropical disturbance only affects the costal areas. They're thinking is because I don't live close to a costal region, I'm good. Unfortunately, that isn't true. Damaging flooding can happen well inland. You also have the issue of torrential rainfall that floods streams and rivers all over the U.S. Here's a case in point. Pennsylvania residents and businesses received more than $175 million in flood insurance payments in 2004. That state could no way be considered a costal state. Another example: Pennsylvania, New Jersey and Virginia were all among the top 10 states receiving hurricane-season flood insurance payments in 2004.

Let's make sure we know what a flood is so the decision to buy flood insurance can be made on facts and not rumors. The National Flood Insurance Program defines a flood this way. "A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is the policyholder's property) from:

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Overflow of inland or tidal waters; or
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Unusual and rapid accumulation of runoff of surface waters from any source; or
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Mudflow; or
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Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waters or currents of water exceeding anticipated cyclical levels that result in a flood as defined above."

When you think of flooding, you think of hurricanes. We need to broaden our thinking when it comes to flooding. What about the runoff of all that snow in some parts of the country? What about that thunderous rain shower that pops up from nowhere and floods some small streams and low lying areas? What about the dam or levee that broke many miles away? Might that affect us? What about an overloaded drainage system that can't handle three days of light but steady rain?

You need to think about flood protection now! Flood insurance is offered by the National Flood Insurance Program (NFIP). There are some qualifications and governmental guidelines you need to follow. The website can supply the details.

Be aware that there typically a 30 day waiting period for flood insurance coverage. The sooner you get coverage, the sooner you'll be protected from the spring snow melt and run off.