AICPA Insurance Programs

                                                  

Flood Insurance is Easy to Purchase

Think you need to live near water to need flood insurance?  Think again.  Floods can be caused by storms, hurricanes and even melting snow.  Don’t get caught in rising water – protect your home with flood insurance.

Flood insurance is provided by Liberty Mutual authorized by the Federal Emergency Management Agency for over 18,000 participating communities.  Flood coverage must be purchased as a separate policy as flood damage is not covered under homeowner policies.

Did you know that even if you don’t live near water, your chances of experiencing a flood are rising?

Homes, office parks and parking lots are springing up in place of forests, meadows, and other open spaces. As a result, the land is losing its natural ability to absorb water and floods are becoming more severe. At Liberty Mutual, we want you to have the peace of mind that comes from knowing your home is protected.

Take steps to protect your home from flood damage

Consult your local building official to find the expected flooding level in your immediate area. Depending on where you live, you may pay a fee for this service. The expected flooding level is often referred to as the base flood elevation or BFE. If your home is in an “A” zone—typically near a river, lake or stream—and the lowest floor is below the BFE, be sure to take these precautions:

• Use water-resistant building materials.
• Leave the basement or lower floors unfinished.
• Prevent sewer lines from backing up— install backflow valves or standpipes.
• Raise your washer and dryer, water heater, oil tank, furnace or any electrical wiring on concrete blocks, above the BFE. If you can’t raise these items, consider protecting them with a floodwall or shield.
• Install flood shields or built-up barriers for basement windows and doors. The tops of the shields and barriers should extend above the BFE.
• Install and maintain a sump pump system if you have below-grade floors.
• Landscape with native plants and vegetation that resist soil erosion.

Note: Information was provided by the Federal Emergency Management Agency (FEMA) and the Institute for Business & Home Safety (IBHS) brochure, Protect Your Home Against Flood Damage. View the Federal Emergency Management Agency’s (FEMA) website at http://www.fema.gov/business/nfip/.

 

 

Flood Insurance FAQ - Here are some frequently asked questions about Flood Insurance.

                                                                                                                   

Does my homeowners insurance cover flood damage?

Flood insurance must be purchased as a separate policy because flood damage is not covered under homeowners policies.

 

I don't live near water - do I need flood insurance?

Floods are the most common natural disaster in the United States. In fact, your home is more likely to be damaged from flood than from a fire. Floods are caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems, dam or levee failure.

 

Doesn't federal disaster assistance pay for flood damage?

Federal disaster assistance is only available if the President declares a disaster, and more than 90% of all disasters are not Presidentially declared. Even when a disaster is declared, government assistance is provided as a loan that you must pay back with interest. Flood insurance, however, will cover damages even if a disaster is not declared.

 

Is flood insurance affordable?

Flood insurance is affordable, and less than you might expect. Contact your Liberty Mutual representative who can provide you with a no-obligation rate quote. You can also visit FEMA's website at www.fema.gov for a chart of estimated premiums and additional information.

 

What is covered by a flood insurance policy?

Direct physical losses caused by floods are covered. Also covered are losses resulting from flood-related erosion caused by strong, abnormally high waves or currents of water activity, severe storm, flash flood or abnormal tidal surge. Damage caused by mudslides as specifically defined in the policy forms is covered. Your basement structure, essential equipment and other basic items normally located in a basement are covered; however personal belongings stored in a basement, such as furniture, are not covered.

 

How do I get flood insurance?

Simply call your Liberty Mutual office. Anyone can obtain flood insurance as long as your community participates in the National Flood Insurance Program (NFIP), a federal program designed to provide reasonable flood insurance to homeowners, business owners, and renters.

 

When will my policy go into effect?

There is usually a 30-day waiting period before a flood insurance policy can become effective.

 

Note: Information was provided by the Federal Emergency Management Agency (FEMA) and the Institute for Business & Home Safety (IBHS) brochure, Protect Your Home Against Flood Damage. View the Federal Emergency Management Agency’s (FEMA) website at www.fema.gov.

 

 

 

 

These tips brought to you by Liberty Mutual Group and the AICPA Auto and Homeowners Insurance Program. The AICPA Auto and Homeowners Insurance Program offers competitive rates and superior service to AICPA members. For more information, or to request a quote, call toll-free 1-866-92-AICPA (1-866-922-4272).

 

Reprinted with permission from Liberty Mutual.  2008 Liberty Mutual Group.  All rights reserved.