Cloudy With a Chance of Super El Niño

The only thing scarier than seeing halloween decorations up in stores this early is the report that all 50 states can expect a 90% chance of being impacted by a SUPER El Niño. So when the New York Times, San Francisco Chronicle, ABC7 and LAist ask us what this means for homeowners – we tell them:

Where it rains, it can flood.

Now is the time to get a quote for flood insurance and add it to your safety net if it’s affordable. Damage caused by wind-driven or falling rain that enters your home through an opening is generally covered under your home policy, but damage from rising water/flood damage is not.

You can buy flood insurance through an agent or broker or directly through the National Flood Insurance program.

Getting a quote from the National Flood Insurance Program (NFIP) is easy: www.floodsmart.gov/policy-quote. You can also enter your address at one of the established flood insurance quote websites and get options to compare.

Here’s what the savvy consumer needs to know about flood insurance and water damage:

• Flood insurance can be an “endorsement” added on to your home policy or a stand-alone policy.
• There is generally a 10-30 day waiting period from the date you buy it to the date it kicks in.
• The lower your flood risk, the cheaper the policy will be.
• If you have a mortgage and your home is in a “Special Hazard Flood Zone” your lender will require flood insurance.
• An NFIP policy provides $250,000 max to repair flood damage to your home.
• An NFIP policy provides $100,000 max for belongings but not automatically. You have to ask and pay for this additional contents coverage.
• An NFIP policy will NOT cover temporary rent and expenses if you cannot live in your home after a flood.
• Private flood policies may cover temporary rent/loss of use expenses.
• MANY home insurance policies now have water damage “sublimits” that cap what your insurer will pay on a water loss. $10,000 is common. Shop for a higher limit if you can.
• Check your home insurance policy and if you don’t have sewer and drain backup coverage, we recommend you add it.
• If you file a water damage claim and your insurer denies it on the grounds that the damage resulted from “continuous and repeated seepage and leakage”, fight back.

For more information, read our Flood Insurance Buying Tips and remember: Flood damage to your car is covered under comprehensive coverage – you may need to add that coverage to your auto policy if you want to protect your vehicles from damage caused by flood or other natural disaster.

September is National Preparedness Month.

We hope you go the extra mile: stock up on sandbags and share this preparedness Tip of the Month with a friend or neighbor.