Thursday, June 18, 2015

Homeowners Insurance vs Flood Insurance

Did Noah have Flood Insurance? NOah, he did not!  He was too busy building the ark.  It might have been difficult to collect on the claim any way.

The Lake area has experienced a lot of rain over the last few days, which has led to some questions over what types of water damage is covered under your Lake of the Ozarks Homeowners Insurance Policy. Typically your policy will cover damage to your home and contents by sudden and accidental water events such as a burst pipe inside the home or rain entering the home after wind damage that allows an opening. Most other forms of water entering your home and causing damage are going to be excluded from your homeowners insurance coverage and may be covered if you purchase a separate Flood Insurance policy through your agent or the National Flood Insurance Program (NFIP).

Is There Coverage for Water Damage Under My Homeowners Insurance?

Burst Pipe - Yes. Your policy would normally cover this type of water loss; however if your pipes froze and burst after not leaving on the heat or the home is vacant, then you may not have coverage.

Water Backup from Sewer and Drain - No. This is not covered. You can (and should) have your agent endorse this coverage onto your policy for a small premium charge. Go back and look at this. Remember, best price does not always mean best coverage. Your agent may have left this off to be the bottom dollar winner.

Appliance Leak -  This will likely be covered if the leak is sudden and accidental. Be sure to take immediate action to prevent further damage. Keep in mind the appliance that caused the damage may not be covered due to wear and tear, but the resulting damage would be.

Water Runoff from Rain - NOT Covered. When heavy rains collect and run down the hillside and into your home or condo, you had better have Flood Insurance as this is not covered under a homeowners policy.

Flood Waters -  You Guessed it! NO Coverage.

Flood Insurance Facts:

  • Available through Insurance Agents and the NFIP.
  • There is a 30 day Waiting Period.
  • Maximum Coverage Amount is $250,000 for the Home and $100,000 for Contents.
  • Home claims are paid on Replacement Cost basis and Contents are on an Actual Cash Value basis.
  • NFIP is subject to Federal Codes and not state specific insurance laws.

So, how do we know that the animals did not play cards on the Ark?  Because Noah sat on the deck.

Be sure to talk to your Lake of the Ozarks insurance agent about your specific insurance needs and if they know any other corny flood insurance jokes.

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral