7 quick facts about flood damage and how to better protect your home and business.
The enormous damage caused by flooding in the Birmingham metropolitan area on April 7, 2014 caught many residents by surprise. According to the National Weather Service, more than 7 inches of rain was measured in Vestavia Hills, while other places in the area reported between 5 and 6 inches of rain.
The National Flood Insurance Plan (NFIP) was created by the US government to help with the high cost of both building and property losses related to flooding.
Seven important facts about flood insurance:
1. No one is safe. – People outside of high-risk areas make nearly 25% of National Flood Insurance claims. In high-risk areas, there is at least a 1 in 4 chance of flooding during a 30-year mortgage. Poor drainage systems, rapid accumulation of rain, and broken water pipes can lead to flooding. Properties on a hillside can be damaged by mudflows, a peril covered by the Standard Flood Insurance Policy.
2. I have a homeowners/renters insurance policy. – Flood damage is typically not a covered peril under most homeowners/renters insurance policies sold in the US.
3. Can I purchase a flood policy in Birmingham? – If you live in a community that participates in the NFIP, you can get flood insurance. Birmingham, Hoover, Vestavia, Homewood, Mountain Brook, Alabaster, Chelsea, and many more municipalities participate in the NFIP.
4. How much coverage does the NFIP allow? – Residential housing structure limit is $250,000 and contents are limited to $100,000. The commercial structure limit is $500,000 and the commercial content limit is $500,000. The content limit for renters is $100,000.
5. Does flood insurance cover damage from storms, rivers, or tides?
Yes, as long as, if confined to your property, the floodwater covers at least two acres. A general flood condition also exists if two properties are affected, one of which is yours.
6. What are flood zones? – Floodplains are areas of land identified by FEMA. Each flood zone describes that land area in terms of its risk of flooding. Everyone lives in a flood zone; it’s just a matter of whether you live in a low, moderate, or high risk area.
7. What is covered in my basement? – Flood insurance covers the foundation elements of your home and the equipment necessary to support the structure (ie HVAC, hot water heater, etc.). The flood policy does not cover basement improvements, such as walls, floors, finished ceilings, or personal belongings that can be stored in a basement.
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