Flood Insurance

May 21, 2019

Flood Insurance

With all the rain we have been getting here in dreary Erie, it is only fitting to talk about the benefits of obtaining a flood insurance policy.

Flooding is not covered under renters or homeowners insurance. It is actually its own policy, which makes it unique. Another thing that makes flood insurance different than other policies you may own is that it is actually administered through the federal government. Policies can be purchased through an insurer (ex: Lafaro Insurance Agency) under contract with the Federal Emergency Management Agency (FEMA).

Flood insurance covers direct physical losses from floods and losses resulting from flood related erosion caused by waves or currents of water exceeding anticipated cyclical levels and accompanied by a severe storm, flash flood, abnormal tide surge or a similar situation that results in flooding (ex: a fire hydrant being damaged in a way that it starts releasing copious amounts of water). Flood insurance coverage for the structure and contents of the home are sold separately. Buildings are covered for replacement cost, but coverage for personal property is available on an actual cash value basis only. The maximum flood insurance coverage amount is $250,000 for the structure of the home and $100,000 for the contents of the home. When insuring your home or rented property with flood insurance, keep in mind that coverage for your vehicle can be found on you auto policy under the optional. Comprehensive portion of a standard automobile policy.

Commercial flood insurance is available from the National Flood Insurance Program (NFIP);it provides up to $500,000 of coverage for your building and up to $500,000 for its contents. You can also purchase what’s called “excess” insurance coverage to rebuild properties valued above those limits.

If you are interested in purchasing a Flood Insurance Policy, call or stop into the office today!

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