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Wednesday, January 27, 2016

Flood Risks, Property Damage and How to File an Insurance Claim

The National Flood Insurance Program (NFIP) defines a flood as a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow.

Many conditions can result in a flood: hurricanes, overtopped levees, outdated or clogged drainage systems, and the rapid accumulation of rainfall. Flooding can cause devastating damage to a home or business so it’s important that people understand flood risks in their area, especially since most standard homeowners insurance policies don’t cover it.

People need to understand that just because a flood hasn’t occurred in a particular area in residents’ memory, that doesn't mean it won't occur in the future. Flood risks aren’t just based on history; they are also based on a number of factors, including rainfall, river-flow and tidal-surge, topography, flood-control measures, and changes due to building and development in the area.

Although flooding can happen anywhere, certain areas are especially prone to serious flooding. To help communities understand their risk, Flood Insurance Rate Maps (FIRMs) have been created to show the locations of high-risk, moderate- to low-risk, and undetermined-risk areas.

1.     In a high-risk area, there is at least a 1 in 4 chance of flooding during a 30-year mortgage. All home and business owners in these areas with mortgages from federally regulated or insured lenders are required to buy flood insurance.

2.    In moderate- to low-risk areas, the risk of being flooded is reduced, but not completely removed. Flood insurance isn't federally required in moderate- to low-risk areas, but it is recommended for all property owners and renters.

3.      In undetermined-risk areas, no flood-hazard analysis has been conducted in these areas, but a flood risk still exists.

“If your home or business is impacted by a flood, you may face more than just damaged building materials and belongings or even structural damage,” said Douglas Waldie, President of Hudson Douglas Public Adjusters, LLC. “Issues ranging from mold, bacteria and viruses to chemical contaminants are common.  Older properties with lead-based paints and asbestos-containing materials are also often a potential hazard during cleanup, demolition and repair activities. These issues make fixing the damage that much more expensive and may be overlooked by insurance companies when a claim is filed. This is just one of the many reasons why people faced with an insured flood claim should look to the expertise of an experienced public adjuster to represent their interests.”

The experts at Hudson Douglas Public Adjusters work solely on the behalf of policyholders to comprehensively document any flood damage and negotiate to have it properly addressed so policyholders receive the full benefits of their insurance policy. They also recently sponsored an educational video about flood risks and property damage that can be seen at: https://youtu.be/uEomZzY07Kw

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