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Complete List of Questions
& Answers
Questions:
Causes
a. What causes
flooding?
What help is available
b. Will my Homeowners policy
cover flood damage?
c. Who gets government
aid?
Review the risks
d. What are my chances
of flooding?
e. Is flooding really a
serious problem?
f. What flood zone am I
in?
g. Can I wait for a flood
warning to buy a flood policy?
Insurance and costs
h. How much does flood
insurance cost?
i. What are the coverage limits for a
standard flood policy?
j. When is buying flood
insurance required by law?
k. Why is my friend's rate
higher than mine?
Options
l. When is a standard flood
policy not enough?
m. Where do I stay when
my home is flooded?
For Small Business Owners
n. What are the real risks to my business?
o. How much coverage can I get?
p. What if I need more coverage?
q. Is there a waiting period?
r. Do I need a Business Continuity Plan?
More information
s. Why flood insurance from Bankers?
t. I'd like to learn more.
Where do I go?
u. Can I talk with a flood
expert?
v. How do I file a Flood claim?
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Answers:
a. What causes flooding?
Flooding isn't just a threat to people
living near water. It happens all across the country. In all regions,
in all climates, in a variety of ways. Take a look at some of the
causes of flooding:
Storm Surge
Storm surge is a large dome of water, often 50 or more miles
wide, that sweeps across the coastline near where a hurricane makes
landfall. Storm surge is the greatest threat to property and life
along the effected coast.
Flash Flooding
Intense rainfall in a brief period leaves more water than the
ground can absorb. When this happens, flash flooding can occur.
Flash floods occur with little or no warning, move at very fast
speeds and can reach a peak in a few minutes. They can roll rocks
and boulders,
tear out trees and destroy buildings and bridges.
Mudslides
Mudslides result from long, heavy rains on hillsides and mountainsides.
The water saturates the soil and acts like a lubricant, causing
soil, large rocks, boulders and homes to slip free.
Snowmelt
This type of flooding comes when higher-than-normal spring temperatures
cause snow to melt rapidly. The excess water is too much for the
frozen ground to absorb.
Ice Jams
On frozen rivers, melting snow and heavy rain break the ice
into large chunks. These chunks float downstream, often piling up
at bridges, dams and narrow passages. These ice jams can force water
to overflow riverbanks, flooding nearby homes and businesses.
Nature isn't the only cause of flooding.
New construction and paving alter land's ability to drain properly.
As a result, run-off can increase two to six times over what would
occur on natural terrain. Areas that were initially zoned as low-risk
can quickly become high-risk as urban development alters
topography.
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The National Flood Insurance Program
(NFIP) legally defines a flood as follows:
Under
the National Flood Insurance Program (NFIP) a flood is defined as
a general and temporary condition of partial or complete
inundation of normally dry land by:
-
The
overflow of inland or tidal waters.
-
The
unusual and rapid accumulation or runoff of surface waters
from any source.
-
Mudslides
(i.e., mudflows) which are proximately caused by flooding, as
defined above and are akin to a river of liquid and flowing
mud on the surfaces of normally dry land areas, including your
premises, as when earth is carried by a current of water and
deposited along the path of the current.
-
The
collapse or subsidence of land along the shore of a lake or
other body of water as a result of erosion or undermining
caused by waves or currents of water exceeding the cyclical
levels which result in flood as defined above.
To
qualify as a general and temporary condition, the flood must
affect either two or more adjacent properties or two or more acres
of land and have a distinct beginning point and ending point.
Also, to qualify, the flood waters
can only be surface water that covers land that is normally dry.
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b. Will my Homeowners policy cover
flood damage?
A Homeowners policy may cover fire,
tornado or even earthquake damage. But seldom does it cover damage
from flooding - nature's most common natural disaster.
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c. Who gets government aid?
Government aid is available only if
the President makes an official disaster declaration (less than
half of all flooding qualifies). Most often, federal disaster aid
comes in the form of an interest-bearing loan. When grants are awarded,
the average amount is less than $2,500. Less than half of flooding
events are declared disasters and insurance is often the sole source
of assistance for victims.
Home Repair Assistance? Only very minor
damage qualifies.
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d. What are my chances of flooding?
Live in a high-risk area? You
have a 26% chance of flooding during the life of your 30-year
mortgage. You're also:
- more likely to experience
flooding than fire - there is a 9% chance
you'll experience a fire
- more likely to have your home burglarized.
- more likely to have your car stolen.
And you don't have to live in a high-risk
zone to be a victim. Almost 25% of all Flood claims come from low-
to
moderate-risk areas.
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e. Is flooding really a serious problem?
The odds may seem like a million to
one you'll ever experience serious flooding. But it happens more
than you'd think. In fact, 90% of all presidentially-declared
disasters involve flooding.
Even minor flooding can mean major
financial difficulties. Imagine just a few inches of floodwater
invading your home. That's more than enough to destroy floors, damage
walls, and ruin appliances - costing you thousands (more on that
later).
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f. What flood zone am I
in?
Below are three major categories of
flood zones. However, A & V zones have several subcategories. To
get the specifics on what flood zone you live in, call your independent
agent or contact us today.
A zones are usually located
near a river, lake or stream - making them the second highest risk
zone. Average premium is around $595 annually.
V zones are usually located
near the ocean. This makes them particularly vulnerable to storm
surges (flooding caused by hurricanes). V Zones represent the areas
at highest risk, and premiums in this zone are the most expensive.
Average premium is around $1,000 annually.
B, C, X, and A99 zones are less
prone to flooding. Depending on your area, you may qualify for a
Preferred Risk Policy and pay as little as $119 per year. Remember
that almost 25% of all flood claims come from these "low-risk" zones.
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g. Can I wait for a
flood warning to buy a flood policy?
Putting off something this important
is never a good idea. Especially since there's a 30-day waiting
period on most new flood policies.
However, there's usually no waiting
period for flood insurance when it's purchased in connection with
making, increasing, renewing, or extending a loan.
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h. How much does flood insurance cost?
The average premium for a standard
flood policy is $450 per year. But remember, you could qualify for
a Preferred Risk Policy and pay as little as $119 per year. (refer
back to "What flood zone am I
in?" for average costs per zone)
Still, it's hard to see the value of
a policy until you actually compare it to the price of flood damage.
See for yourself:
| Flood
Damage Repair Estimate |
|
| Remove debris |
$ 1,500
|
| Replace
carpet |
15,500
|
| Replace
drywall/paint/wallpaper |
6,500
|
| Repair
cabinets |
4,500
|
|
$28,000
|
Estimated Flood Damage Total
$28,000
Average Annual Flood
Insurance Premium $500
A disaster loan of $28,000, which is
repayable with interest, would cost more than $1550 a year over
18 years - in addition to your existing mortgage payments.
Plus, if you receive disaster assistance, you must purchase
and maintain flood insurance to receive further assistance.
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i. What are the coverage limits of
a standard flood policy?
The maximum coverage on a standard
flood policy is:
| Single-family
home structure |
$250,000
|
| Single-family
home contents |
$100,000
|
| |
|
| Business
structure |
$500,000
|
| Business
contents |
$500,000
|
| |
|
| Renter
contents |
$100,000
|
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(See how you can increase your coverage
under "When is a standard flood policy not
enough?")
In the event of damage from flooding,
your claim is paid regardless of whether or not a disaster is declared
by the President. And a portion of your claim can be paid immediately
to speed the recovery process.
What can a flood policy cover?
- Flood debris cleanup
- Structural damage (walls, stairways,
ceilings, floors)
- Household appliances damaged by
floodwater (refrigerators, air conditioners, heat pumps, circuit
breaker boxes, washers/dryers)
- Wall-to-wall carpeting, tile and
other flooring surfaces
What can contents coverage include?
- Furniture (beds, couches, dressers,
entertainment centers, tables)
- Collectibles, artwork, knickknacks
- Clothing, shoes, accessories,
jewelry
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j. When is buying flood insurance required
by law?
If you have a federally-backed mortgage
on a home located in a high-risk zone, federal law requires you
to purchase flood insurance to secure a loan.
Also, if you've received a federal
grant for previous flood losses, you must have a flood policy to
qualify for future aid.
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k. Why is my friend's rate higher
than
mine?
Lots of factors determine flood insurance
rates. These include:
- flood zone
- amount of coverage
- location of structure
- age and design of structure
- building occupancy
- structure elevation if located in
a Special Flood Hazard Area
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l. When is a standard flood policy
not enough?
If it would cost more than $250,000
to replace or repair your home, a standard flood policy won't be
enough.
Let's assume it would cost $750,000
to rebuild your home. That leaves $500,000 not covered by a standard
flood policy. What do you do? Simple. Get a policy that fits.
Excess Flood Insurance can increase
your standard single-family coverage by up to an additional $500,000
- covering up to $750,000 total. Have a business? Extend your structure
coverage from $500,000 up to $1 million.
Contents coverage? Whether a homeowner
or business owner, you can purchase up to $100,000 above the existing
coverage cap (for a total of $200,000 for a single-family structure
and up to $600,000 for a business structure).
Excess Flood limits could be
even higher in your state. Ask your independent agent for details.
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m. Where do I stay when my home is
flooded?
Only if your home has been destroyed
can you qualify for temporary housing (assuming a presidential disaster
was declared). Fortunately, you can prepare in case you don't.
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n.
For business owners: What are the real risks to my business?
Floods often strike without warning -
destroying buildings, equipment, and inventory. If that doesn’t
sound serious, you should know:
- Most business policies do not cover flooding.
- One in four businesses that shut down from a natural disaster
never reopen.
- Ninety percent of all natural disasters involve flooding.
- The most common form of federal disaster assistance is an
interest-bearing loan.
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o.
For business owners: How much coverage can I get?
Whether your business is large or
small...whether you own or lease facilities…commercial flood
insurance offers protection for your business - inside and out.
Commercial Contents Coverage:
Covers inventory, merchandise, machinery, and other contents up
to $500,000
Commercial Building Coverage:
Covers buildings up to $500,000. Even if you don’t own the
building, you can insure the value of improvements you’ve made.
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p.
For business owners: What
if I need more coverage ?
An Excess Flood policy from Bankers can increase the coverage
limits of your business flood policy by:
- an additional $500,000 for building coverage
- an additional $100,000 for contents coverage
(Please Note: Excess Flood insurance is only available in certain
states)
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q.
Is
there a waiting period for business policies?
Yes. There’s a 30-day waiting period on most new flood
policies, so time is of the essence.
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r. Do I need a Business
Continuity Plan in case disaster strikes?
Most definitely. That’s why we’ve put a plan together for you.
From pre-storm preparation...to claim information…to tips on
cleanup… we’ll walk you through the steps that lead to the least
inconvenience and the fastest recovery.
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s.
Why Flood Insurance from Bankers?
Bankers was among the very first companies
admitted into the National Flood Insurance Program in 1984. We
became the nation's largest flood insurance carrier serving
independent agents. We reentered the flood business in 2008 and
our commitment to service is as strong as
ever.
That vast experience translates to
claims service and customer support second to none.
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t. I'd like to learn more. Where do
I go?
Get the latest on flooding in your
area plus tips on preparedness in our Storm Season section.
For fun-filled kids learning, check
out our Flood Zone Kids section.
For more information about the National
Flood Insurance Program, visit their site:
www.floodsmart.gov.
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u. Can I talk with a flood expert?
You bet. For any questions or comments,
please contact us or your agent.
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v. How do I file a
Flood claim?
To file a claim:
1. Call your agent and report your claim. Be sure to leave a
phone number where you can be reached. You can also call Bankers at
1-800-725-9472.
2. An adjuster should contact you within three business days and
schedule an appointment to assess the damage - walking you through
the entire claim process and providing any necessary forms. Response
times may vary depending on how many policyholders the adjuster is
working with.
Documenting the damage before your adjuster arrives:
1. If possible, photograph the inside and outside of the premises
showing the damaged property and the height of the water.
2. Separate damaged from undamaged property for the adjuster’s
examination.
3. Itemize missing or damaged goods room by room. Try to:
- locate receipts or proofs of purchase.
- note manufacturer names, dates and places of purchase.
- write down serial numbers, prices, and dates of purchase.
4. Discard any damaged property that presents a health hazard or
could hamper cleanup (save a carpet sample so the adjuster can see
the extent of damage). Be sure you can give your adjuster a clear
description of anything you’ve thrown away.
Settling your claim:
1. When the adjuster arrives, he or she will inspect your
itemized list of damaged or destroyed property and work with you to
calculate the value. It is important you and the adjuster are in
clear agreement on what needs to be replaced or repaired.
2. Let the adjuster know if you need a monetary advance or
partial payment of your loss. This amount is determined based on the
extent of damage and your coverage limitations.
3. Your adjuster will prepare a repair estimate of damage to your
property. If you disagree with the estimate, talk with your
adjuster. If the issue remains unresolved, Bankers will arrange for
the NFIP General Adjuster to make a final determination.
4. Your adjuster will provide you with a Proof of Loss form, a
sworn statement made by you, substantiating the insurance claim.
5. Submit your signed and sworn Proof of Loss form to Bankers
within 60 days following the loss. Upon receiving it, we’ll send
your claim check, usually within 5 business days.
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