Water damage is among the most frustrating kinds of losses to deal with because there is so much confusion about what is covered and what is not.
The first thing to remember about flood insurance is that where the water came from makes all the difference.
For example, if someone lives near a body of water or within a flood plain and still holds a mortgage, they are required to purchase a minimum amount of flood insurance to satisfy their lender – but that policy will likely cover flood waters entering on the first floor only. Most policies do not cover water damage entering the building through seepage.
Seepage is defined as water that enters the structure and does not do direct damage to the home or business. Other common exclusions to flood insurance include:
- Burst pipes
- Sewage backups
- Covered drains
Flood insurance is a sore subject for many New Yorkers after being battered by so many “historic” storms in such a short period of time. After Sandy, many people were concerned that their flood insurance premiums would skyrocket and they would not be able to afford to insure their homes. A program within FEMA called the National Flood Insurance Program (NFIP) seeks to make it easier for homeowners to afford coverage.
According to its website, the NFlP aims to:
…reduce the impact of flooding on private and public structures. This is achieved by providing affordable insurance for property owners and by encouraging communities to adopt and enforce floodplain management regulations.
Because flood insurance exists in a quasi-free market, and because the policies are especially full of exclusions, speaking to an experienced broker is often the best way to navigate the small print. Unlike an agent, a broker has an unlimited number of ways to help you find the policy that is right for you. Contact us to learn about flood insurance today!
Seth Jonas
S Jonas Associates LLC
450 Seventh Avenue #2208
New York, NY 10123
Telephone: (212) 736-9490
Email: seth.jonas@sjonasinsurance.com
Website: sjonasinsurance.com
The Insurance Pro 