Considering that California has suffered one of its worst droughts for the past few years, it’s not likely that many people have thought about purchasing flood insurance. However, homeowners and businesses might want to consider getting flood insurance after the devastating mudslides in Montecito.
Obviously, flood insurance covers flooding, but it also covers ‘earth movement.’ That’s right. Insuring against floods also covers mudslides.
The dry conditions in California led to this past year’s deadly wildfires. Many people lost both their homes and businesses when the fires swept through. Hopefully, they had homeowner’s insurance and commercial insurance policies that covered their loss from fire.
But, most homeowner’s insurance and commercial property insurance does NOT cover flooding. Coverage for floods is separate and most people don’t know they don’t have it until it’s too late.
After the wildfires swept through and burned all the vegetation, the ground was nothing more than dry dust. All it took was a small amount of rain to turn that dust into a moving mudslide. We saw what happened just outside Los Angeles. ‘Earth-movement’ caused many people to lose businesses, homes, and even their lives.
For those who had flood insurance, some of the losses will be covered. For those that did not, there is a good chance that they will suffer a total loss.
With this in mind, you might want to check with your insurance agent to see which natural disasters your personal insurance and commercial insurance policies do and do not cover.
Typical Flood Insurance Coverage
Personal and Commerical Flood Insurance normally cover both the building and also the property within when it is damaged by a flood. However, you must specify both types of flood coverage. They are separate.
For insurance purposes, a flood is defined as an excess of water on land that is normally dry. This can be caused by several different scenarios.
- An overflow of inland or tidal water
- Runoff of surface water
- Collapse of land along a body of water due to erosion
Limitations You Need to Know About
Some companies limit coverage for the lower levels of a home or business. For instance, they might pay for the damage to an upper level but not the basement or main floor. Others might set limits on certain types of flooding, such as sewage backups.
Payment for damages will only be made to the maximum amount allowed in your policy minus your deductible. In the case of the Los Angeles mudslides, if the homeowners did not have flood insurance coverage equal to the cost of rebuilding, they may find themselves unable to recover from that disaster.
How to Find More Information on Flood Insurance
The best way to learn more about flood insurance is to call your agent. Since flood insurance is separate from your homeowner’s policy, it is best to have them review the coverage you already have. Then, they can help you put together the right flood insurance to protect your home or business.
Don’t get caught unprepared. Contact Post Insurance today to learn more about flood insurance.
Post Insurance has served the needs of businesses in California for over 60 years. We provide all types of personal and commercial insurance, including Flood Insurance at the most competitive rates. Post Insurance is the largest insurance agency in the area, representing over 50 different insurance companies. Call today and find out more about EPLI and how it can protect you from potentially catastrophic losses.