After all of the recent flooding, it seems there are numerous misconceptions from property owners about flood insurance. Here are some of the most popular myths dispelled:
1. MYTH: “If I don’t have flood insurance, my property insurance does not cover any water related damages.”
FACT: Depending on how the water damage occurred, there may be coverage under a business property or homeowner’s insurance policy.
2. MYTH: “Since I don’t have flood insurance, my lost business income due to water damage is not covered either.”
FACT: Depending on how the water damage occurred, and on the specific language in the insurance policy, there may be coverage for lost business income even without flood insurance.
3. MYTH: “Flood insurance covers all of my flood damage up to the limits of my policy.
FACT: Flood insurance is designed to cover a building’s infrastructure: walls, ceilings, electrical, air conditioners, water heaters and the like. It also covers washers, dryers and freezers. But, flood insurance does not cover damage to electronics, furniture, clothing and other personal items.
4. “Flood insurance is expensive.”
BOTH. This may and may not be true. If you live in a flood zone, the coverage likely will be more expensive. The amount of the coverage also affects cost. As an example, for a private
dwelling in a non-flood zone in central Pennsylvania, $250,000 in building coverage and $100,000 in contents coverage costs about $400 per year.
McNees Wallace & Nurick’s Insurance Recovery and Counseling Group
