Do you need flood insurance?
Hello, friends! I hope that you and your family are safe after our near miss with Hurricane Helene here in the Atlanta Suburbs. When you open virtually any media platform, you’ll see disaster after heartbreaking disaster across the southeast, and the popular topic of discussion has often turned to Flood Insurance. As a REALTOR®, I often find myself discussing the importance of homeowner's insurance with clients. In light of events like Hurricane Helene, it's crucial to examine your coverage to ensure you're protected from unforeseen disasters. Let’s break down what your homeowner's insurance typically covers, what falls under flood insurance, and additional considerations you might want to keep in mind.
What Disasters Are Covered by Regular Homeowner's Insurance?
Most standard homeowner's insurance policies cover a variety of common disasters. Here’s a quick look:
· Fire: Damage from wildfires or structural fires.
· Windstorms: Damage from hurricanes, tornadoes, and high winds (usually subject to deductibles).
· Hail: Damage from hail storms that can affect your roof and siding.
· Theft and Vandalism: Protection against theft and property damage from vandalism.
· Lightning Strikes: Coverage for damage caused by lightning.
· Explosions: Damage from explosions, including gas line issues.
What Disasters Fall Under Flood Insurance?
While homeowner's insurance covers many disasters, flooding is often excluded. Here’s what you need to know:
· Flash Floods: Sudden flooding from heavy rain or overflowing bodies of water. This would mean that a flooded basement in a regular rainstorm would fall under flood insurance.
· Storm Surges: Rising water levels caused by severe storms.
· River Flooding: Overflow from rivers and streams due to excessive rain.
· Groundwater seepage: Groundwater that pushes into a basement or crawl space during a heavy rain event.
There are a few exceptions (see the section below regarding Tropical Storms and Hurricanes).
Determining Whether a Catastrophic Event Falls Under Flood Insurance
The classification of a disaster as a flood event generally depends on a few key factors:
Source of Water: Flood insurance is typically triggered by surface water that overflows from rivers, lakes, or excessive rain. If water seeps into your home due to heavy rainfall or storm surges, it’s considered flood damage.
Location: The Federal Emergency Management Agency (FEMA) determines flood zones based on historical data and floodplain maps. If your property is in a designated flood zone, flood insurance is often mandatory. Check your flood zone status here.
Extent of Water Damage: If water rises above ground level and enters your home, it typically falls under flood insurance rather than standard homeowners’ coverage.
Who Needs Flood Insurance?
Even if you live outside a high-risk flood zone, it’s wise to consider flood insurance, especially in a worst-case scenario. Here are some guidelines:
· Homeowners in Low-Risk Areas: Many homeowners in moderate or low-risk zones are still affected by flooding.
· Older Homes: Properties built before current flood plain maps can be at risk.
· Proximity to Water Bodies: If you live near a river, lake, or coastline, consider getting flood insurance.
· Basements: Homes with basements are more susceptible to flooding and may benefit from coverage, even if not near a body of water.
Policies for Tropical Storms and Hurricanes
When it comes to tropical storms and hurricanes, the situation can be a bit complex:
Wind Damage: Most homeowners' policies cover damage from wind-related events. However, be sure to check your deductible, as some policies have separate hurricane deductibles that can be higher than standard deductibles. If wind damage occurs during a TS or Hurricane, the damage may not be covered under a basic policy.
Flooding from Storms: As previously mentioned, flooding caused by storm surges or heavy rains often falls under flood insurance. This is crucial to note if you live in an area prone to hurricanes.
Business Interruption Insurance: If you run a home-based business, check if your policy includes coverage for lost income due to damage from a storm or hurricane.
It is important to note: Many events that are deemed to have happened ONLY due to a Hurricane or Tropical Storm may fall only under Hurricane/ Storm coverage. It’s important to ask your insurance agent very specific questions about this when purchasing a policy. Run through lots of different scenarios!
Additional Rider Policies: Earthquakes and Landslides
In addition to reviewing your standard policy and flood coverage, it’s important to consider other potential disasters specific to your region. Here’s what you might want to look into:
· Earthquake Insurance: Georgia is not typically known for seismic activity, but if you want added peace of mind, consider this rider.
· Landslide Coverage: While not common in East Cobb, if you live on a slope or hilly terrain, it might be worth exploring this option.
My Final Thoughts
In the wake of natural disasters like Hurricane Helene, it’s a great time to review your insurance policies. Ensure you’re adequately covered for the disasters most likely to impact your home. Don’t hesitate to reach out to your insurance agent to discuss your specific needs and find the right coverage for you.
As your local real estate expert, I’m here to help you navigate not just buying or selling your home, but also understanding how to protect it. Stay safe and informed, East Cobb!
