Water, water everywhere, but no flood insurance

What’s wrong with us? We’ve lost thousands of dollars of household goods and priceless remembrances because of torrents of water in our streets, homes and basements — yet we still don’t have flood insurance.

Some 81% of Americans know that the standard homeowners’ insurance policy doesn’t cover flood damage, but barely one in 10 has a flood-insurance policy, according to Bankrate.com.

What’s more, flooding is the No. 1 natural hazard in the U.S., according to the National Flood Insurance Program, a division of the Federal Emergency Management Agency. Flash floods alone are the top weather-related killer in the U.S.

“Flooding is very common, and people need to wake up to the fact that they may need flood insurance,” says Doug Whiteman, insurance analyst at Bankrate.com, which recently asked people what they knew about flood insurance.

It’s something to consider ahead of this year’s hurricane season, which is roughly June 1 through Nov. 1 and is forecast to be a tough one.

Meteorologists at the University of Colorado warn that the tropical Atlantic has warmed unusually over the past several months, and there’s an “above-average probability” that a major hurricane will make landfall. They’re looking for nine hurricanes this year, four of which are expected to be major, and 18 named storms. Remember that it’s not always the hurricane’s winds that wreak havoc, but the storm surges and flooding that come with them.

As entire neighborhoods throughout the Midwest grapple with heavy spring rains and flooding, just six months after Hurricane Sandy lambasted the East Coast from Florida to the New England states, we find that one in five homeowners still seems clueless about flood insurance. That’s true even after insurance agents reported a surge in new flood-insurance policies in New York and New Jersey post-Hurricane Sandy.

You must get a flood-insurance policy on top of your homeowners’ insurance. The basic homeowners’ policy underwrites your home’s structure, your personal belongings like furniture, clothes, electronics, and sports equipment, liability and additional living expenses if you cannot stay in your home because of damage from a fire, storm or any other insured disaster. All, of course, have limits — and one of them is if the home is flooded. In some high-risk areas, you won’t be able to get a mortgage without flood insurance.

There’s a good tool at Floodsmart.gov that will give you the risk level of your property and direct you to insurance brokers who can help you get coverage under the National Flood Insurance Program. The average flood-insurance policy will set you back about $600 a year, though costs vary widely.

Here’s what you should know about flood insurance:

• It covers physical damage to your property and possessions.

• You may need both building and contents coverage. Building insurance covers the home’s foundation and the equipment necessary to keep it running, like a furnace, water heater and circuit breaker. It will even underwrite carpeting, paneling and wallboard. Contents insurance covers items like a washer and dryer, a freezer and the food inside it.

• Flood insurance doesn’t cover moisture, mildew or mold that could have been avoided. Nor does it cover property outside the house, like the deck, sidewalks and hot tubs. Not all basements are covered either.

• The costs vary, depending on the design and age of the property, what the flood risk is and the amount of coverage.

• The coverage doesn’t start when your check is cleared. There’s typically a 30-day waiting period, which means if you’re looking to avoid this year’s hurricane season, now is the time to jump in.

Connecticut Commissioner Offers Advice on Preparing for Winter Storm

As the Northeast and New England states brace for a major blizzard, Connecticut Insurance Commissioner Thomas Leonardi is offering policyholders tips on preparing for the storm and filing claims if there is property loss.

“One of the most important things consumers can do right now is take stock of what they have. Take the time now to make a home inventory or update an existing one,” Commissioner Leonardi said. “This will be extremely helpful should the need arise to file a claim. Do not hesitate to contact the insurance department if you have questions or complaints.”

Commissioner Leonardi offered the following advice on what types of damages may or may not be covered. The commissioner said, however, that policies may vary in coverage. He recommended that consumers contact their insurance agent or the state insurance department with questions about the specifics of their policies.

• Snow removal: Homeowners insurance does not cover injuries to the homeowner during snow removal. However, snow removal professionals should be covered under their own liability policies.

• Ice dams: Interior or exterior damage caused by an ice dam on a roof is generally covered. However, many policies do not pay for ice dam removal.

• Frozen pipes: Most policies cover pipe replacement and water damage. However, coverage may not apply if the homeowner turned off the furnace for the winter without winterizing the home.

• Tree Damage: In general, the policyholder of the property that is damaged by a falling tree – not the tree owner – should file the claim with his or her insurance company. The insurance policy covers the cost to remove the tree from the damaged property and the resulting damage, minus the deductible. If the tree damaged a covered structure, the claim would be made on the homeowner’s policy. If the tree damaged a vehicle, the claim would be made on the auto insurance policy.

• Storm power outages: An all-risk policy generally pays for damage caused by loss of power and appliances damaged by the outage. Check the policy to see if it covers spoiled food. Most policies will not pay for shelter when the homeowner loses power for extended periods of time unless there is damage to the home that causes it to be uninhabitable.

• Renters: Landlord’s insurance will pay for winter damage to building. It will not pay for damage to personal contents, which must be covered by the renter’s own insurance.

Before the storm, the commissioner recommends the following steps for consumers:

• Keep the policy and other important documents together in a safe place.

• Review the policy to understand the coverage – call the company or agent with questions.

• Create or update the home inventory. Take photos of the possessions and Note model and serial numbers. Assemble original sales receipts and/or appraisal documents.

After the storm, consumers are advised to take following steps if damages have been sustained:

• Call the insurance company’s 24-hour claims phone number as soon as possible; provide policy number and other relevant information and documents.

• Take photographs/video of the damage. Make repairs necessary to prevent further damage, but do not make permanent repairs until the insurance company inspects the damage.

• Save all receipts from temporary repairs.

• Keep a diary of all conversations, e-mails and other correspondence with the company.