Get a Quote

Why Flood Insurance is a Must-Have – Don’t Get Caught in the Storm!

Posted on June 22, 2019August 9, 2023 by Shield Insurance Agency

Shield Insurance Agency Blog | Flood Insurance | Start A Quote Today!

Many people think of flood insurance as only for those who live right next to a large river, lake, or ocean. Did you know that flood insurance can be purchased by almost anyone, whether you are in a flood zone or not? Your typical home insurance policy does not cover claims associated with a flood. So, what is the definition of a flood you ask? A flood is “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from Overflow of inland or tidal waters; Unusual and rapid accumulation or run-off of surface waters from any source; mudflow; Collapse or subsidence of land along the shore of a lake or a similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood.” (FEMA NFIP)

That definition doesn’t sound like it affects Michigan too much right? Wrong! Michigan ranked in the top 10 states for the total number of claims filed and the total claim payments for 2014. The NFIP (National Flood Insurance Program) reports that in 2014 there were 495 claims filed in the State of Michigan with total claim payments totaling $8,816,751. That’s Michigan only! The NFIP paid out more than $345 billion total in flood insurance claims in 2014.

Is flood insurance right for everyone, not necessarily, but it is worth looking into to protect your family and your investment. It’s important to know what is covered under your regular home insurance policy and what would be covered under a flood insurance policy. Just a couple of inches of floodwater can cause tens of thousands of dollars in damage.

The average flood insurance policy costs about $700 per year and there are a few different programs that homeowners fall into or qualify for. Every home location is different so it is important to check out flood rates for your specific location and not base your decision on your neighbor’s findings; yours might be very different.

I’ll blog next time about what is covered and what is not covered under a flood insurance policy. In the meantime, feel free to contact me with any questions or inquiries.

Tammy Kaptein

Flood Insurance: What is Covered

Posted on June 22, 2019August 31, 2023 by Shield Insurance Agency

Shield Insurance Blog | Flood Insurance | Contact our office!

Back in August we talked about the definition of a flood and how it affects clients in Michigan. I would like to continue that topic and discuss what is actually covered by a flood insurance policy. According to the NFIP, generally, physical damage to your building or personal property “directly” caused by a flood are covered by your flood insurance policy. Here is a brief list (not limited to) of what is covered under “Building” coverage:

The insured building and it’s foundation
The electrical and plumbing systems
Central air conditioning equipment, furnace and water heaters
Refrigerators, cooking stoves and built-in appliances like dishwashers
Permanently installed carpet over an unfinished floor
Detached garage (up to 10% of building coverage)
Debris removal

A brief list of what is covered under the “Personal Property” coverage:

Personal belongings such as clothing, furniture and electronic equipment
Curtains
Portable and window air conditioners
Portable microwave ovens and portable dishwashers
Carpets not included in building coverage
Clothes washers and dryers
Food freezers and the food in them

What is not covered by either Building or Property Coverage:

Damage caused by moisture, mildew or mold that could have been avoided by the property owner.
Currency, precious metals and valuable papers such as stock certificates.
Property and belongings outside of a building such as trees, plants, wells, septic systems, walks, patios, fences, seawalls, hot tubs and swimming pools.
Living expenses such as temporary housing
Financial loss caused by business interruption
Most self propelled vehicles such as cars, including their parts.

Now, with all of the above being said, we will discuss next time the coverage limitations in a basement. Stay tuned because I think you will be surprised.

*Lists taken from the FEMA National Flood Insurance Program Summary of Coverage.*

Submitted by Tammy