How Flood Claims Are Paid
Regular homeowners insurance does not cover flooding, which is why Congress created the National Flood Insurance Program (NFIP) in 1968. This was done to protect homeowners, renters and business owners from the disastrous economic consequences brought about by floods.
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Filing Steps
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It is essential to collect all relevant policy numbers and information before filing a flood insurance claim with your agent or insurance company. Stress with your agent that the damage is flood-specific and that you are filing a NFIP claim. It's also important to take several photos of water and personal property damage as evidence for your adjuster, according to Allstate.
Payment Limit
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Before you purchase flood insurance, check to see if your community participates in the NFIP. Your agent will be able to inform you of your eligibility. Homeowners can insure their home for up to $250,000 and personal contents for up to $100,000. Renters can cover up to $100,000 for damage to personal belongings, according to the website Flood Online.
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Minimize Flood Damage
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As the saying goes, the best defense is a good offense, so it's wise to install sump pumps and purchase a generator, and make certain both are working properly. You can also install backflow valves to ensure that flood waters do not enter toilets and drains. In addition, a licensed electrician should be hired to raise electric switches, sockets, circuit breakers and wiring at least 12 inches above the projected flood level, suggests Flood Online.
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References
Resources
- Photo Credit flood image by dinostock from Fotolia.com
