Floor Water Damage Caused By Hurricane
The most common sources of floor water damage for which homeowner and secondary insurance may cover normally arises from such things as broken pipes, sump-pump and water heater failures. However, floor water damage including structural damage that is caused by hurricanes and other forms of natural disasters (called “Acts of God”) are mostly excluded from standard forms of homeowner coverage.
Flood Damage Caused By Wind Storm Surges – Usually Excluded From Coverage
Even if you have insurance that covers “Acts of God” many insurance companies exclude coverage for flood claims which are caused by wind surges such as hurricanes. Such claims are regularly denied by insurance companies. In order to legally justify their denial of coverage for flood damage caused by wind surges and hurricanes, insurance companies draft specific definitions in their policies of insurance as to what constitutes “wind damage” verses “flood damage.” Insurance companies draft such definitions in order to legally justify excluding expensive flood water claims.
Why do insurance companies refuse to cover flood damage caused by natural disasters? The simple answer is money. Insurance companies are focused solely on earnings. They are profit driven enterprises. Consequently, insurance companies often pay out claims only when they are legally obligated to do so.
Supplemental Insurance – Cost Prohibitive
While homeowners can purchase supplemental insurance endorsements that cover a specific type of natural disaster, such as flooding, the homeowner will likely have to pay a very high premium for such coverage, and if your home is located in a high-risk area, such as gulf state coastlines, insurance companies will not offer such coverage whatsoever. At least not without a federal government guarantee.
Federally Regulated Flood Insurance Programs
Thankfully, the National Flood Insurance Program (NFIP) allows homeowners in high-risk flood areas to purchase flood insurance through policies that are guaranteed by the U.S. government. This highly regulated federal insurance program guarentees insurance companies will not be hurt by covering such claims. Instead, in essence, the taxpayer will foot the bill.
Coverage Limits – Federally Regulated Insurance
NFIP offers two types of flood policies: One line of coverage reimburses the homeowner for damage caused to the building structure up to $250,000. The second line of coverage reimburses the homeowner for loss of personal property up to $100,000.
Whether you have NFIP coverage, or qualify under FEMA disaster relief dollars, in many cases, you will be requiring water damage restoration and cleanup services. These clean-up services can be found in most large cities and counties throughout the united states.