What is a flood and do you need insurance coverage for it? It is an inundation of tidal waters or overflows over normally dry land areas.
The controversy with Hurricane Katrina in 2005 caused the definitions to more complex and argued in courts. Just remember, homeowners Insurance policies do not cover floods, period! A separate flood insurance policy is required to cover floods. If you are curious to find out if you are in a moderate to high-risk flood zone, you can check on FEMA.gov and other flood insurance related websites.
The coverage is provided through FEMA’s National Flood Insurance Program in most cases. Basic coverage for flood insurance includes up to $250,000 for the building structure and $100,000 for personal belongings with varying deductibles. Excess flood policies are available to increase the maximum limits of the building coverage from $250,000 and the contents coverage of $100,000. If you have a higher value home and need more than the maximum coverage offered for the building and contents, then this is a must for you.
In most cases, there is a 30-day waiting period between the date the application is signed and when the policy goes into effect. The policy also must be paid in full. So, if the thought of getting flood insurance has crossed your mind, don’t wait until another hurricane or storm is near to try to secure flood coverage. Make sure to get the flood insurance coverage in place well in advance.