Definition of Flood Insurance

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Flood insurance, as its name suggests, is designed to cover repairs made necessary due to a flood. Get a definition of flood insurance with help from an experienced insurance professional in this free video clip.

Part of the Video Series: Insurance Questions
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Video Transcript

My name is Susan Combs, and today we're going to talk about the definition of flood insurance. With the definition of flood insurance this really is going to depend on the type of entity you are looking at. So are you wondering about this in terms of your homeowners or are you wondering about this in terms of your business? So in terms of your home, depending upon the flood zone that you are going to be in if you are in a, you know, high risk area, you are going to have to get your flood insurance through the government. If you are in a lower zone, then you can get it through a private carrier. With a business you can typically get it through a private carrier but it also depends on where your business is. I mean if you are a waterfront property versus say you know, in the mountains or something like that, your premium is going to be much higher or you might not even be able to get it if you are on a waterfront property. But typically what this is going to cover is flood insurance usually covers all things in terms of sewer and backup. So if there is a pipe that bursts or there is sewer backup or things like that, then it's going to cover that. The things that you have to be concerned about and make sure that are going to be covered in your policy is if you live in a hurricane zone and there's water that comes in, are you going to be covered? So typically with all flood insurances something to keep in mind is it does not cover things that are below street grade. So if you say have a, in terms of your home, have a finished basement or you have a sunken living room that you take two steps down from the street level, things that are going to be in those areas are not going to be covered and a lot of people don't realize that. The same things in terms of your business, say you have storage that's in the basement, if you have a lot of files and things like that in the basement and you have a flood, that's not going to be covered. So just really know what you are buying when you buy a flood insurance policy, talk to a broker that's well versed in this, have them explain all the exclusions to you so you know exactly what you are buying.


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