Flood Damage: Navigating your Policy

To begin, your regular homeowner’s insurance policy does not include protection against this kind of water disaster, and there are some instances that may seem like water related incidents that will be deemed the product of some other cause. For the most part, if you are not in a flood zone, you will be told that you do not need a protective policy. This information is misconstrued to mean that your home has capability to repel flood waters. This is not true. The statement simply means that your mortgage company or other determining entities do not require you to purchase such a policy based on a determination of the percentage chance your property has of receiving such havoc. It is, in fact, estimated that twenty to twenty-five percent claims made to companies for accrued damages due to flooding are not made by those clients whose homes and establishments were labeled as being at risk of such occurrences.

We all know that in the midst of Hurricane Katrina, that nowhere was safe, though many had been told they were in hazardous water zones that mandated the purchase of polices against such damages. The entire Gulf Coast got wet. But was it due to flood? For some, yes. For some, no.

A lot of cases in this particular instance were deemed the fault of the wind even if the property in question ended up under water. The reason for the water is what has to be determined. There were several cases in which the wind was responsible for damaging the structure which was then susceptible to rising water or storm water. It is kind of a “what came first, the chicken or the egg?” scenario, except in this case, the insurance company will conjure an answer, defend their findings, and pay accordingly.

A good example of this phenomenon in action is in those situations in which windows were blown open or knocked out by debris. The homes and establishments were of course subject to storm water, but since the water came in as a result of wind damage, flood policies did not kick in; however, the uproar that this is underhanded is just not true. It is in the policy that you buy, or for some, it is in the flood damage policy that you should have purchased.

The only way to be sure that you are protected against all circumstances is to research your probabilities, understand the prospective policy, and act accordingly. This knowledge will help you make a wise decision, though nothing will protect you against the possibility of flood damage. You can choose a path that will allow you to be compensated for damages.