Flood Insurance Facts

By Catherine Powell

Image courtesy of flickr

Having narrowly dodged the bullet that wreaked a swath of destruction from the Florida Panhandle to South Carolina when Hurricane Michael past nearby a few weeks ago, I just wanted to point out that Hurricane season isn’t over until November 30.  While all of us in north Florida breathed a silent sigh of relief after the third most destructive hurricane in US history went around us, I thought I’d take the time to devote this week’s blog to discussing flood insurance facts.

Which is more destructive, wind or water?

When Hurricane Michael made landfall its wind-speed was clocked at 155 MPH, making it a category 4, just 2 MPH short of being a Category 5.  Wind at that speed can rip roofs off houses, tear mobile homes to pieces and split trees in half.  It can also tear up the electrical grid, leaving millions of people in the dark for days or even weeks on end. But as dangerous as this kind of windstorm can be, an even bigger threat comes from the storm surge and flooding that comes with these monster storms.  It was reported that Michael brought with it an 8-foot storm surge and rainfall of up to a foot in 24-hours in some places.  The damage from wind and storm surge cause by this one storm alone is expected to be between $3-$5 billion.

Hurricane Florence that hit North Carolina on September 14 was even worse when it came to precipitation.  Even though the storm was only rated a Category 1 hurricane, it dropped just short of 3-feet of rain.  Property damage caused by flooding in the affected areas alone is expected to top $20 billion.  As you can see from the figures above, while wind damage can be destructive in any hurricane, water damage can be far costlier even in a Category 1 hurricane. 

Do you have to live in a flood zone to be flooded?

Image courtesy of wikipedia

Another fallacy is that only those who live in flood zones need flood insurance.  Some people even think that unless they live in a flood plain, they can’t purchase flood insurance.  While it’s true if you live in a flood plain your mortgage company will require you to purchase flood insurance, any homeowner, especially those living in a storm-prone state like Florida, should look into flood insurance.  The most obvious reason is that your homeowner’s policy specifically excludes flood damage.  This means if a major storm or afternoon thundershower backs water up into your home, the company that provides your homeowner’s policy won’t pay you one thin dime for flood damage.  While more than 22,000 flood insurance claims were filed in Florida after Hurricane Irma passed through in 2017, nearly 10% of those were filed in Duval County.  Many of the flood-damaged properties in Jacksonville were not in designated flood zones.

How long do I have to wait for flood insurance to take effect?

Every time a named storm is predicted to head our way, our phones start ringing off the hook as homeowners scramble to find coverage.  While the incentive of a potential flood event is a good thing when it comes to making flood insurance top of mind, the bad thing is once a storm is predicted to hit, it’s too late for a flood policy to take effect.  That’s because once a flood insurance policy is written, 30-days have to elapse before it goes into effect and you can file a claim.

Won’t the Federal Government step in to help people who live in storm-ravaged areas?

Image courtesy wikimedia

While it’s true that FEMA is tasked with assisting the public in the aftermath of a natural disaster, the amount of help you are likely to get from the agency is limited.  Depending on the severity and frequency of natural disasters, sometimes FEMA can be stretched thin.  Other times, their efficacy has come into question.  After Hurricane Katrina, the agency was criticized when thousands of trailers bought for hurricane survivors rusted away without being distributed.  Even after Hurricanes Harvey and Irma, the agency apologized for staffing and supply-related shortcomings that left many survivors frustrated.  While both the state and federal government do provide some relief to residents after a disaster has been declared, the amount of assistance provided is not meant to make home and business owners whole again.

How do you file a claim?

Even if you do have flood insurance, don’t think it’s a blank check.  If you don’t document and catalog everything you own before a storm hits, you will be hard pressed to receive compensation once it has passed.  Most insurers recommend you shoot a video of your possessions, as well as gathering up receipts and your insurance policies before moving them to a secure location that won’t be affected by wind and water. 

Before you can file a claim, you need find your insurance policies and speak to your agent.  Your agent will tell you what you need to do to document the damage and file your claim.  More importantly, they can also let you know how long it will be before you can expect to see an insurance adjuster, as well as how long after that it will be before you can expect to see a check from the insurance company.  

Image courtesy of Pixabay

Depending on the amount of damage to your property, you may or may not be able to remain in your home.  If you need to temporarily move elsewhere, find out if any of your living expenses are covered in your policy.  Also make sure you shore up your home to keep it from sustaining further damage.  However, make sure you don’t dispose of the evidence before an adjuster signs off on it.  While you may need to remove water-damaged carpets, furnishings and other belongings from your home to minimize the growth of mold, it could be a mistake to have these items hauled off before your adjuster sees them. This means you will need to haul the damaged items onto your driveway or into your yard and cover them with a tarp until the adjuster arrives unless your insurance agent tells you otherwise. 

This is also a good time to take photos or shoot a video detailing the damage done by the storm. As well as producing moving or still images, it’s also a good idea to make an inventory of damaged or lost items including their purchase date and purchase value.

While you may be itching to start repairing your home, with the exception preventing further damage, you need to wait for the adjuster before you start making your home whole again.  You should also request a Proof of Loss form from your insurer. This will help you document the damage to your property and may be required by the adjuster to process your claim.

Next will come the process of securing bids for repairs from reputable contractors.  You’ll need to show these bids to the adjuster before you have the contractor begin the repairs.  If your adjuster tells you that all your bids are too high, you can ask him or her to negotiate a better price with the contractors or to recommend other local contractors to secure additional bids.  Under no circumstances should you hire a contractor until the adjuster approves the bid.  Also make sure any contractor you are considering has the necessary permits and liability insurance required by law before work commences.  It’s only by making sure that all the I’s are dotted and t’s crossed that you can make sure you avoid disaster after the storm has passed.

Catherine Powell is the owner of A Plus All Florida, Insurance in Orange Park, Florida.  To find out more ways to save on flood insurance, check out her website at http://aplusallfloridainsuranceinc.com/