Flood Insurance: Essential Coverage Homeowners Often Overlook

Flood risk is a significant concern for homeowners, but many remain unaware that standard homeowner's insurance policies typically exclude flood coverage. Lori Callahan, Assistant VP and Account Executive for Personal Lines at B.F. Saul Insurance, highlights that approximately 40% of flood claims originate from properties outside designated high-risk zones. This underscores the importance for homeowners in all geographic areas to consider specific flood insurance to mitigate financial risk.

In addition to securing appropriate flood insurance, proactive property maintenance plays a critical role in flood preparedness. Homeowners are encouraged to inspect their yards after rainfall for any water pooling or drainage issues, which can be addressed by installing French drains or additional piping. Routine upkeep such as gutter cleaning, foundation crack sealing, and sump pump installation with battery backup further strengthen defenses against water intrusion.

Timing is a crucial factor in flood insurance acquisition. National Flood Insurance Program (NFIP) policies require a mandatory 30-day waiting period before coverage becomes effective, whereas private insurers can activate policies more swiftly, typically within 7 to 10 days. Standard NFIP coverage limits often cover $250,000 for the building and $100,000 for personal contents, but higher-value properties may benefit from supplemental private flood insurance policies that extend coverage to finished basements and valuable personal property.

Overall, flood insurance and preventative home maintenance strategies should be integral parts of risk management for homeowners across all flood zones. Preparations taken well in advance ensure financial protection and mitigate the operational and restoration challenges posed by water damage.