Insurance Talk: Flash floods, wildfire zones: Consider flood ...

The Federal Emergency Management Agency (FEMA) says that one of the most important things Colorado residents can do to protect their homes, businesses and personal property?a step that far too many neglect?is to buy flood insurance. Because most do not live on a mapped flood plain, they never think to do so. But FEMA says 25 percent of flood damages occur outside of high-risk areas, and 30 percent of claims paid are not in a flood plain.

Only a few inches of water from a flood can cause hundreds or thousands of dollars of damage. The average flood claim over the past 10 years has averaged $48,000.

Colorado wildfires alter the landscape, increasing the probability of devastating damages from flash floods, mud flows and debris flows, even in the event of a small amount of rain. Outdated or clogged drainages or heavy downpours also contribute to the potential for flood.

Flood insurance can be purchased by homeowners, tenants and business owners through licensed property and casualty insurance agents, and is made available by the National Flood Insurance Program (NFIP). The NFIP, created by Congress in 1968, offers coverage if the community participates in the NFIP. In turn, participating communities agree to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce flood potential.

Jim Rookard, director of insurance services for AAA Colorado, notes, ?Basically, anywhere it rains, it can flood. An important thing to note is that, in addition to recognizing the need for flood insurance protection, consumers should know there is a 30 day waiting period required between the time flood insurance coverage is purchased and the time it goes into effect An exception being, if the initial purchase of flood insurance is made in connection with making, increasing, extending or renewing of a loan on the property, the waiting period is waived.? Protection for flood damage for autos is found in the ?comprehensive coverage? portion of auto insurance policies.

Standard homeowners insurance policies do not protect against flood-related losses. Only flood insurance does.

Contents coverage is a separate, optional coverage from the structure. It is not automatically included with building coverage. Rates vary, depending on the amount of coverage, what is covered and the flood risk for a particular property.

It is always best to contact your agent and discuss your unique circumstances.

AAA Connection

• AAA Colorado is a full-service insurance agency. If you?re thinking of adding flooding insurance or would like to see what other coverages we offer, contact any of our insurance agents at 800-251-7189 or visit AAA Insurance for more information.

Source: http://encompassmag.com/2012/11/insurance-talk-flash-floods-wildfire-zones-consider-flood-insurance/

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