With the summer in full swing, torrential downpours are not uncommon. Multiple days of rain in a row can put Read More…
Top Three Myths about Flood Insurance
With the summer in full swing, torrential downpours are not uncommon. Multiple days of rain in a row can put many properties at risk of flooding as the water table rises unexpectedly. Before a flood occurs, be sure to check your insurance policy to ensure your apartment community is well covered for water damage due to flooding.
Adding on flood coverage to your current insurance policy will increase your annual insurance costs. But, this is a cost well worth paying. In fact, if your apartment community is flooded, the cost to repair any damaged areas is likely to be in excess of $30,000. Many apartment community (and homeowners) do not fully understand flood insurance, how it works, and who is eligible to have it. We will review the top three flood insurance myths in this blog to keep you well informed and keep your head above water, no pun intended!
Myth #1 – Your apartment community must be located in a flood prone area or be at high risk of flooding.
This is simply not true. If your apartment community is in a flood plain, then your local ordinances may require you to have flood insurance. However, anyone can get flood insurance, if you really want it, regardless of the location of the property or the risk of flooding to that area. If you are unable to get flood insurance through your current insurance provider, you can look into alternative flood insurance plans with the federal government. On average, a flood insurance plan will cost between $600 – $1,500 per year depending on the location and the appraised value of the property. If you do decide to add on flood insurance, do so ahead of time, before the rainy weather hits! There is a standard 30-day waiting period after the plan is purchased, before the flood insurance coverage will become active.
Myth #2 – Flood insurance covers everything that is damaged.
As with any insurance plan, not everything is covered. Most insurance policies have a maximum claim amount for flood damage. This is usually less than the cost to completely rebuild the structure. For example, if your flood insurance policy has a total loss amount of $750,000 but the estimated cost to rebuild your apartment community is $850,000, you will be left to cover the additional money ($100,000) needed to restore the apartment buildings. Most flood insurance plans will have an additional allowance for personal possessions that are damaged. If your plan does not, look to add this as a supplement. Keep in mind, most plans will cap this coverage for personal possessions at $100,000. If you’re ever unsure what coverages you have on your insurance policy or what additional coverages you should add on, feel free to contact the insurance specialists at Top Floor Insurance for a free insurance policy review.
Myth #3 – Flood zones never change.
Like with anything in the environment, floodplains and flood zones do change! Just because your apartment community is not in a designated flood zone now, does not mean that it will never be. In some cases, you may not be notified if the flood zone changes to now include your property. As a good practice, every time you renew your policy, be sure to double check and add on the necessary flood coverage, if needed. Visiting sites like FloodSmart.gov is also a great resource to get real-time and accurate information about current flood plains and flood zones. Simply enter in your property’s address and you will receive valuable information about flood risks for your area and possible flood insurance premiums.
The insurance specialists at Top Floor Insurance have decades of experience working with multifamily property owners across the country. If you’re unsure if you need (or should have) flood insurance, call us today at 404-266-3218 and we would be happy to schedule a time to review your policy and provide you with a price quote for flood insurance.