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FLOOD
SAFETY AWARENESS WEEK: A mild winter
and drought in many parts of the U.S. may have consumers believing they don't
need to worry about flooding. However, according to FEMA,
even one inch of water flowing into a 1,000 square foot home during a storm
or from a rising river can amount to a loss in excess of $10,000 that is not
covered by a basic homeowners policy. During National Flood Awareness Week,
the National Association of Insurance Commissioners (NAIC) encourages all
consumers to evaluate their need for a flood insurance policy and take time
to prepare for a loss by making a home inventory. |
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Finding
Coverage Floods —
or an excess of water (or mud) on normally dry land — are not covered by a
typical homeowners or renter's policy. Most homes may be eligible for
coverage under the The
National Flood Insurance Program (NFIP). The NFIP offers flood insurance
policies for homeowners or renters in communities that participate in the
federal program. There is a 30 day waiting period after the purchase of a
flood insurance policy before the coverage kicks in, so take that into
consideration when determining if and when to purchase coverage. Another
danger of flooding that is not generally covered in a typical homeowners or
renter's policy is mold. Flood waters can be the source of mold damage long
after the mess has been cleaned up. If you are concerned about this kind of
damage, check your current policy closely to see if it includes coverage for
mold caused by flooding. If it does not, contact your agent to find out what
options are available. Many insurance companies offer coverage for a separate
premium. Making
a Disaster Plan A NAIC
national survey found a significant lack of preparedness among consumers in
documenting their belongings. A home inventory is important for a number of
reasons. It can help you determine the types and level of coverage you need
before disaster strikes. And after a major loss, the home inventory can
assist you in filing a claim. There are
several simple ways to start building a home inventory. You can download a
home inventory spreadsheet here
that will help get you started. If you are using an electronic or paper
spreadsheet, remember to take pictures of your belongings, and save them in
the same place as the home inventory. Or you can
download the free NAIC myHOME
Scr.APP.book app for iPhone®
or Android
smart phones. The app guides you
through capturing images, descriptions, bar codes and serial numbers, and
then storing them electronically for safekeeping. The app even creates a
back-up file for email sharing. More
Information You can
find more information about what flood insurance covers and how to know if
your home is in a flood area in this
consumer alert. Flood
insurance is only sold by licensed insurance agents in your area. To protect
yourself from a fraudulent insurance agent or company, before signing an
application or paying for coverage, STOP.
CALL
your state insurance department. And CONFIRM that the
agent and company you are dealing with is licensed to sell flood insurance. Your
state insurance department can also answer
questions about flood insurance needs or preparing a disaster plan. March 2012 |
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About
the NAIC
The National
Association of Insurance Commissioners (NAIC) is the U.S.
standard-setting and regulatory support organization created and governed by
the chief insurance regulators from the 50 states, the District of Columbia
and five U.S. territories. Through the NAIC, state insurance regulators
establish standards and best practices, conduct peer review, and coordinate
their regulatory oversight. NAIC staff supports these efforts and represents
the collective views of state regulators domestically and internationally.
NAIC members, together with the central resources of the NAIC, form the
national system of state-based insurance regulation in the U.S. For consumer information, visit insureUonline.org. |
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To
unsubscribe from the "NAIC News Release" electronic service, To
unsubscribe from all NAIC Electronic Services, send a blank e-mail to NAIC
Opt Out services. ©2012 National Association of
Insurance Commissioners. All rights reserved. |
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