Avoid getting soaked

HOMEOWNERS DON’T WANT TO END UP UNDER WATER, WHICH MAKES FLOOD INSURANCE A MUST — HERE’S WHAT YOU NEED

Consumers purchase homeowners insurance to safeguard their property from a variety of perils, including fire, wind damage, theft, and vandalism. But they often incorrectly assume that a major water hazard — flooding — is included in their coverage.

Not to worry, you may think: I don’t live in a coastal area, near a dam or levee, or a region affected by hurricanes. But truth be told, it can flood anywhere affected by precipitation. In fact, heavy rainfall, severe storms, and fast-melting snow are significant causes of flooding, as are wildfires and construction and development that can alter natural paths of drainage.

Floods remain the country’s number one natural disaster, accounting for an average of more than $1.9 billion per year in total flood insurance claims between 2006 and 2015; the average flood-related claim today exceeds $46,000, and the top states for flood claims include Texas, South Carolina, Florida, Kentucky, Missouri, Oklahoma, Illinois, Louisiana, Washington, and Indiana.

Whether you currently own or are considering purchasing a residence, experts strongly recommend investing in optional flood insurance, regardless of the area.

“Typically, property insurance policies do not cover flood damage, and this exclusion is often highlighted in bold letters on the declarations page of each policy,” says Gina Clausen Lozier, Boca Raton, Fla., an associate at Berger Singerman law firm. Therefore, in order to be covered for flood loss, property owners must obtain a separate flood insurance policy,” “Separate flood policies generally provide coverage for losses caused by storm surges of tidal water that result in flooding, or the overflow of water from an inland body of water.”

Flood insurance may actually be required if three conditions are met: you buy a property located in a federally designated special flood hazard area, your community participates in the National Flood Insurance Program (NFIP), and your home is or was financed by a federally regulated lender or backed by Freddie Mac or Fannie Mae. Homes located in these high-risk areas have at least a one in four chance of flooding over the course of a 30-year mortgage; but even moderate-to low-risk areas submit more than one in five NFIP claims and receive one-third of Federal disaster assistance for flooding.

Butch Kinerney, marketing and outreach chief