The Importance of Having Comprehensive Flood Insurance

July 30, 2019

Following major storms and hurricanes in the last two decades, including Katrina, Superstorm Sandy, and Hurricane Harvey, changes to flood insurance coverage have been made. Stricter codes and possible new insurance requirements have been written in as flood coverage has made significant jumps year over year in the last 15 years in the United States.

While no one can predict the full impact of a hurricane, superstorm, or even a major rainstorm that comes in during the summer, there are ways homeowners can keep their property protected. One way is through local insurance, such as flood insurance in Babylon options. Doing so could help you avoid major losses in your property, items, and overall finances.

Here’s why having flood insurance is an important piece of home-related coverage when it comes to keeping everything and everyone covered.

What is Flood Coverage?

Typically, flood insurance policies pay for direct physical damage to an insured property up to the replacement cost or Actual Cash Value (ACV) of the damages. Also, this standard type of flood insurance can cover up to the policy limit of liability, whichever is less in any case. In some cases, an Excess Flood policy can be obtained, and may even be needed, to cover the replacement cost if it exceeds the maximum limit of $250,000.

Homeowners need to purchase flood insurance Babylon coverage separately because a standard homeowner’s or renter’s insurance policy does not cover damages related to flooding. Flood insurance is needed to cover damages related to structure, heating, and cooling systems, debris clean up, and electrical and plumbing systems.

Why Flood Insurance is So Valuable

Even if you don’t live in the direct path of flood risks, such as a traditionally stormy area or coastline, you can still be on the hook for flood damage. For instance, a lot of people who garnered some form of flood damage following Hurricane Harvey lived outside of the most high-risk areas. Rivers can swell up, overflowing and spilling out to communities nearby following major rainstorms. And bad drainage in a city’s planning can lead to constant flooding issues, like in Houston, which sees constant threats of flooding during summer storms.

It’s not always large storms that can cause damage either. Spring thaws, snowmelts, broken pipes, overflowing irrigation–these can all pose risks to homeowners when it comes to the possibility of flood damage.

Understanding Your Flood Insurance Coverage

A Babylon flood insurance policy will cover the building and structural damage, but your personal contents inside the basement and crawl spaces won’t be covered, unlike your homeowner’s insurance policy. Also, it could take 30 days or more after you purchase flood insurance for the policy to kick in and be effective. It’s important to be vigilant about purchasing flood insurance and work with your insurance representative to understand its effectiveness and coverage specifics.

About Regan Agency

A family-owned business, Long Island-based Regan Agency has more than 35 years of experience serving the library insurance and risk management needs of Tri-State residents and businesses. We have earned the trust of our clients based on our integrity and commitment to offer individuals and businesses quality library insurance products at competitive prices backed by unparalleled responsive service. Just give one of our professionals a call at 631-669-3434.