Don’t Drown In Your Insurance
Protect Your Home from Flood Damage
 

New Orleans, LA—Forget what you think you know, homeowners insurance does not include flood damage. However, you can protect your home, business and belongings with flood insurance from the National Flood Insurance Program (NFIP).

Everyone lives in a flood zone. In 2004, Louisiana ranked #1 in the United States for flood losses and #3 in flood policies filed, surpassed only by Florida and California. 

So, what is a flood?

According to the Federal Emergency Management Agency, a flood is a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties from:

• Overflow of inland or tidal waters
• Unusual and rapid accumulation of runoff of surface waters from any source
• Mudflow
• Collapse of subsidence of land along the shore of a lake or 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 as defined above

Who is eligible for flood insurance?

• Home owners for protection of their structure and contents, and renters for protection of contents
• Builders in the course of construction, condominium associations and condominium owners
• Condominium associations that can purchase a master policy to cover both the common areas and their members’ individually owned units
• Residential condominium unit owners may purchase building and contents flood insurance to supplement the association’s policy
• Owners of nonresidential condominium units may purchase contents coverage

What types of coverage are available?

• Homes can be insured up to $250,000, and furnishings and contents coverage can be purchased up to $100,000.
• Commercial property can be insured up to $500,000 on the building and $500,000 on contents.
• All policies carry a deductible, usually $500 or $1,000, with the deductible applying separately to structure and contents coverage.

Don Beery of Eustis Insurance & Benefits in New Orleans, offers the following tips:

Five Facts Every Customer Needs to Know About the National Flood Insurance Program (NFIP)

1.      Everyone is eligible for flood insurance.

• Whether your flood risk is high, medium or low, you can buy flood insurance as long as your community participates in the NFIP—all Louisiana communities participate.
• Flood insurance is a good buy even in low or moderate risk areas.  Approximately 25% of all claims paid by the NFIP are from policies in the low to moderate risk zones. Plus, the Preferred Risk Policy may be available for just over $100 per year.

2.      Flood insurance is affordable.

• A typical $100,000 flood insurance premium cost about $33 a month or $400 a year. In comparison, a $50,000 federal disaster assistance loan with interest would cost about $240 a month or $2,880 a year for 30 years.

3.      Flood insurance is easy to obtain.

• NFIP flood insurance can be purchased from private insurance companies and agents.

4.      There is usually a 30-day waiting period before the coverage goes into effect.

• Plan ahead so you’re not caught without flood insurance.

5.      Federal disaster assistance is not the answer.

• Federal disaster assistance is only available if the President declares a disaster.
• The President does NOT declare more than 90% of all disasters in the United States.
• Flood insurance, however, pays even if a disaster is not declared.

According to Beery, “structures eligible for flood insurance are principally above ground and have in place two or more rigid walls and a roof, as well as, mobile homes that are on a permanent foundation.”  Mr. Beery further explains, “Standard Flood Insurance Policy Forms have the complete definition of provided coverage; however, we suggest reviewing your policies to learn exactly what is covered in your specific policy.”

Eustis Insurance & Benefits, a member of the Independent Insurance Agents and Brokers of America and the Council of Insurance Agents and Brokers, is one of the area’s largest independent insurance agencies. Founded in 1946, Eustis Insurance & Benefits has offices in New Orleans, Mandeville, Baton Rouge and Houston.

Editor’s Note: Don Beery is available for interviews
 
Eustis Insurance, a member of the Independent Insurance Agents of America, is one of the area's largest independent insurance agencies. Founded in 1946, Eustis Insurance has offices in both New Orleans and Mandeville.