Buying Flood Insurance
Basic homeowners insurance does not cover damage from floods, and even when you purchase special flood insurance, coverage does not begin until 30 days after you obtain the policy, so the time to buy is now. To buy a flood insurance policy, call your agent, or contact one of the private insurance companies that write flood insurance under a special arrangement with the federal government. If your agent does not write flood insurance, or you do not have an agent, call the National Flood Insurance Program's (NFIP) toll free number to obtain the name of an agent in your area who does write flood insurance. The number is 1-888-356-6329 or TDD 1-800-427-5593.
Protect your home and property now from the financial impact of hurricanes and flooding:
- Make a list of all furnishings and valuables. A photographic or videotape record is a good idea. Keep the list and photo records in a safe deposit box or somewhere else safe away from your home.
- Keep auto and homeowner policy numbers and agents phone numbers in a safe place.
- Make a complete and thorough review of all your insurance policies. The following is a list of important disaster-related coverage considerations that will help you evaluate the adequacy of your policy:
- Make sure you have adequate insurance. The cost to rebuild you home by an independent contractor - materials, labor, profit and overhead - determines the proper amount of insurance you should carry.
- Make sure your personal property insurance is adequate and that and that it settles personal property claims at replacement cost.
- Know the difference between replacement cost and actual cash value basis. Replacement cost means the insurer will pay the full cost to repair or replace your house with new materials of the same type, kind and quality of those damaged or lost. Actual cash value means the insurer could pay less, the insurer being allowed to depreciate the cost based on age and condition.
- Guaranteed replacement cost coverage will pay the full cost to rebuild your home even if the reconstruction cost exceeds the policy limit.
- Water that comes from the sky is covered by most homeowners insurance policies. Water that comes from street flooding; creek, river or stream flooding; storm surges, and other rising water is not.
- Losses from wind damage may not be covered by your policy. Check your policy for all wind damage provisions and deductions. If you find you are not adequately covered or cannot get the coverage you want, contact the Florida Windstorm Underwriting Association. FWUA's purpose is to provide Floridians adequate wind and hail coverage when it is not available in the insurance marketplace and pay claims when losses occur. Wind losses are settled on an actual cash value basis.
- Increased construction costs caused by changes in local building codes are not covered. If you live in an older home, check with a building contractor to see what additional costs due to changes in the building codes could be involved in replacing your home.
