Are you aware if you have flood insurance coverage?

9/25/2018 (Permalink)

Do you need to buy National Flood Insurance from the NFIP (FEMA's National Flood Insurance Program) if you live in Western Michigan?

If you have a flood, your home insurance is probably not going to cover anything. Most home policies covering water damage require that the source of the water originate inside the structure. If ground water comes up from the floor or through the walls you are probably not covered. If it runs down your driveway and into your new egress window into the basement bedroom, no coverage. If it bubbles up from the city sewer, no coverage. If your sump pump quits and groundwater floods your basement, probably no coverage (unless you bought a limited sump pump policy rider).

There are a few exceptions. Often the homeowner’s policy covers sewage back up if it comes from your septic tank system (some policies consider the tank, drain field, and lines part of the homes plumbing). A few sump pump policies will cover you from sewer backups on your portion of the line to the city system. Read your policy carefully. You should have coverage if a tree falls on your home and damages the roof or high winds damage the home and allows rain to enter. Ice dams are usually covered. Other than these few exceptions the answer is usually “no coverage”.

According to FEMA, the average cost of one inch of water in your home approaches $25,000. USA Today says only 10-20% of North Carolina coastal homes and less than 3% state wide have flood insurance. The main reason obviously is cost. A policy in a high-risk area can easily exceed $10,000 a year. This cost is established by the government based on the risk assessment maps produced by FEMA. Much of western Michigan has been mapped and you can view your area by entering your address at the FEMA Flood Map Service Center. Most of our area is listed minimal or low risk of flooding which drastically reduces the annual premiums.

But flooding can and does happen. According to FEMA more than 20% of flood claims come from properties outside high-risk flood zones. If you live in a marginal flooding area of western Michigan, SERVPRO of Manistee, Ludington, and Cadillac recommends that you check the pricing on these low risk area policies. And please, read the policy carefully to determine exactly what is and is not covered. Also, do not hesitate to contact your local homeowner’s insurance agent and get his advice on protecting what is probably your most valuable asset.

Far too often SERVPRO of Manistee, Ludington, and Cadillac gets called to help flooded homeowners in Western Michigan and we must tell them to call their agent, but that they probably do not have coverage. Don't let that happen to you.