Flooding can happen at any time and in almost any part of the country. In 2012, Superstorm Sandy ripped across the East Coast, causing over $70 billion in property damage to homes and businesses. It’s a startling number, made all the more so because over half of those affected by the storm were uninsured, leaving property owners and businesses without the basic means to continue their livelihood. If you haven’t given consideration to floods and flood insurance, you owe it to yourself to read the article “Why Don’t Property Owners Have Flood Insurance?” in September’s issue of Claims Magazine.
Many property owners don’t realize that their flood insurance may not offer the same categories of compensation that are standard with other policies. The National Flood Insurance Program (NFIP) was created by the US government to address flood insurance needs, which were considered too volatile and difficult for private insurance markets. Unlike most property insurance policies, typical flood insurance through NFIP does not include coverage for additional living expenses while the property is unusable, which can be months or even years depending on the damage caused in a flood. This can be devastating to any property owner, especially for businesses that are unable to operate while their location is being repaired.
However, inadequacies of NFIP programs are now being addressed through independent insurance policies. This extended flood coverage includes additional living expenses, as well as several other supplemental coverage types that will allow a property owner to get back on their feet and recover what was lost in a catastrophe.
Flood insurance, both through the NFIP and private insurance agencies, can be a complex subject. Kompani Risk & Insurance Solutions, Inc. offers insurance and consultation in 27 states, and we want to make sure you’re aware of all available information about your options in case of major flood damage. For more information, call Matsen CEO, R. Glenn Matsen, directly on his personal extension at 916-306-5902.