Flood Insurance Information
Flood Insurance - Poughquag, NY
Also serving Lagrangeville, Hopewell Junction, Dutchess County and other areas in New York
What is Flood Insurance?
Flood insurance is a separate policy designed to help protect your home and belongings if they are damaged in a flood. The insurance definition of flood is very different from our everyday usage of the word flood. Many of us would think of our basement becoming flooded if a water pipe bursts and water gets everywhere. Yes, that might be a flood to you, but that would NOT qualify under the definition of a flood when it comes to insurance. In fact, your burst pipes would be covered under your homeowner insurance. It is important to understand what constitutes a flood and what does not.
Insurance Definition of Flood
The National Flood Insurance Program (NFIP) has created the definition of a flood in your New York flood policy as follows:
A flood is a general and temporary condition of partial or complete inundation of 2 or more acres of normally dry land, or of 2 or more properties (at least one of which is the insured's property).
Floods may be caused by:
- Overflow of inland or tidal waters;
- Unusual and rapid accumulation or runoff of surface waters from any source;
- Mudflow (a river of liquid and flowing mud of surfaces of normally dry land) and collapse; or
- Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.
These do not meet the definition of a flood and are excluded from coverage: landslides, backup of sewers unrelated to a flood, windblown rain, snow, or sleet. Flood that is within the insured's control will not be covered.
Not Covered By Your Homeowners Insurance
There's something you should know: Flood losses are not covered by your homeowners insurance policy. The coverage in flood policies and homeowners policies do NOT overlap. If you want protection from a flood, you need to buy a flood insurance policy.
How to Protect Your Home in Case of Flooding
Floodwaters have the power to damage not only your home and sense of security, but also your financial future. How can you protect your most important investment in case of flooding?
Option 1: Hope that you'll receive Federal disaster relief if a flood hits.
Many people wrongly believe that the U.S. government will take care of all their financial needs if they suffer damage due to flooding. The truth is that Federal disaster assistance is only available if the President formally declares a disaster. Even if you do get disaster assistance, it's often a loan you have to repay, with interest, in addition to your mortgage loan that you still owe on the damaged property.
Most importantly, you must consider the fact that if your home is flooded and disaster assistance isn't offered, you'll have to shoulder the massive damage costs alone. The bottom line is that if you're looking for secure protection from financial loss due to flood damage, Federal disaster assistance is not the answer.
Option 2: Buy flood insurance and stay protected no matter what.
When disaster strikes, flood insurance policyholder claims are paid even if a disaster is not Federally declared. Flood insurance means you'll be reimbursed for all your covered losses. And unlike Federal aid, it never has to be repaid.
Upon purchase of a flood policy, a 30-day waiting period is in place from the time of application and premium payment. Your policy does not take effect until 30 days after you purchase flood insurance. So, if the weather forecast announces a flood alert for your area and you go to purchase coverage, it's already too late. You will not be insured if you buy a policy a few days before a flood.