April Showers Bring May Flowers, and the Need for Flood Insurance

Most of us vividly remember 2012’s images of downtown Manhattan under water, thanks to Hurricane Sandy, yet we think it can’t happen to us. However, floods are the No. 1 natural disaster in the United States, according to the Federal Emergency Management Administration.

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“Flooding occurs in Indiana just about every spring when the snow melts and creeks and rivers overflow their banks,” says Rick Ainsworth, property and casualty manager for Indiana Farm Bureau Insurance.
Standard homeowner policies do not cover flood damage, and although this is clearly stated on the policy jacket or the notice attached to the policy’s declarations, people still assume otherwise.

“Most people don’t realize that flood damage isn’t covered by your homeowner’s policy,” says property field claim representative Mark Williams. “We go through this every year, and it is really emotional. You’re faced with all this damage and you didn’t even realize it wasn’t covered until it is too late.”

Flood insurance is available through the National Flood Insurance Program. Created by Congress in 1968, NFIP covers property damage, structural and mechanical damage, content damage and provides for flood debris cleanup. Flood insurance is available to any property owner located in a community participating in NFIP. Participation means that a community adopts and enforces flood plain management ordinances to reduce future flood damage. A list of Indiana communities participating in NFIP is located at www.fema.gov/nfip.

Flood insurance is required for most mortgages on homes that are in Special Flood Hazard Areas, commonly referred to as being “in a flood plain.” However, floods can happen in all risk zones. According to FEMA, residential flood claims amounted to more than $30 billion in damages from 2007-2012. FEMA recommends that all property owners purchase and keep flood insurance because it is the best means of recovery from flood damage.

“If you live in a flood plain, you have to have it, and if you don’t, it is quite affordable and really worth it,” says Marion County agent Teresa Capps. “As we say, there are two types of basements: Those that have already flooded and those that will.”

An NFIP policy will provide coverage for flood losses. One way to obtain coverage for loss due to water incursion from sewers or drains is to purchase a policy endorsement or rider. Indiana Farm Bureau Insurance offers its members the opportunity to purchase coverage for losses associated with water backup through sewers or drains and sump pump overflow. Basic policies usually exclude loss resulting from these events. The water backup and sump overflow endorsement provides protection in the event a sump pump fails, or water backs up through sewers or drains, and this endorsement is relatively inexpensive.

“People have lived in the same home for decades and never seen a flood, so they think it can’t happen to them, but Indiana is experiencing 100-year storms and it does happen,” Williams says. “We still have to abide by the policy, and it is devastating to find out you don’t have coverage. Our company will do what we can to help, but much of the damage is excluded. You really need to talk to an agent about getting the proper coverage to protect yourself.”

Contact your Indiana Farm Bureau Insurance agent for assistance purchasing insurance through NFIP, or find an agent at www.infarmbureau.com. Your agent can also discuss your specific needs and suggest how the water backup and sump overflow endorsement may help address those needs.

Don’t get caught knocking on wood. Make sure you have the proper coverage.