April 30, 2024

April Showers Bring…Flash Flooding

April showers bring May flowers, but those same April showers can also bring flash flooding. Flooding is the most common disaster in the United States and floods occur in all fifty states. In the last several years, there have been dozens of flash flooding incidents in communities throughout the Midwest. While the majority of our area is not considered to be in a “Special Flood Hazard Area,” as defined by the federal government, flooding has been a reality of life for many of us. In fact, 29% of all floods occur in areas considered to be low or moderate flooding risk and most standard insurance policies do not provide coverage for damage due to flooding.

The National Flood Insurance Program (NFIP) was created in 1968 to help provide a means for property owners to financially protect themselves. It is important to know the basics of the NFIP flood policy. Here are some facts about flood insurance:

  • The NFIP defines a flood as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties from overflow of inland or tidal waters; unusual and rapid accumulation or runoff of surface waters or mudflow.
  • The maximum amount of coverage for a commercial property is $500,000 for the building and $500,000 for the contents.
  • The maximum amount of coverage for a residential property is $250,000 for the building and $100,000 for the contents.
  • There is typically a 30-day waiting period before a flood insurance policy takes effect, so don’t wait until the last minute to purchase a policy.
  • Damage caused by a sewer backup is only covered if it is a direct result of a flood, as defined by the NFIP policy.
  • Coverage is very limited in basements and any other areas below the lowest elevated floor. For the most part, the contents of a basement are not covered.
  • Deductibles apply separately to building and contents with different amounts to choose from.

Without insurance, relief from floods primarily comes in the form of loans. If your community is declared a disaster area, no-interest or low-interest loans are usually made available by the federal government as part of the recovery effort. These loans are just that—loans—and must be paid back. Obtaining a flood insurance policy is the only way to protect yourself fully from the cost of flooding.

The good news is that flood insurance is relatively inexpensive for the properties located in low or moderate flood zones, and coverage is available to everyone regardless of what flood zone your building or home is located in. TFG Aviation can help you get the coverage you need to protect your property.

Our mission is to help clients protect assets and enhance employee outcomes through the delivery of exceptional risk management and employee benefit consulting services and products.

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