Unprecedented flooding arose after one of the most devastating hurricanes the United States has ever known. In fact, in the southeastern areas of the Lone Star State, most homeowners don’t even have flood insurance. And who can blame them? There was never a previous one in the town. Although hail and wind storms are a constant concern for property and business owners, no one imagined that rainwater would contribute to the enormous damage suffered and spread across the country in recent days. Surely not the mortgage companies, since they don’t even require it of borrowers!

But now that the number of dead and people forced to flee their homes in search of shelter has risen, one thing is clear. When things finally settle down, homeowners and people in the business sector will have to deal with epic loss and damage on their own due to the lack of related coverage.

For homeowners without flood coverage, the facts are uncomfortable as they are painful: A standard home insurance policy doesn’t protect against flooding and related damage. The insurance industry emphasizes in no uncertain terms that compensation is only provided to those who had the foresight to purchase flood insurance in the event of water damage resulting from atmospheric conditions such as a hurricane, tropical storm, or other inclement weather.

A little background on flood insurance:

The year was 1968 when the United States Congress drew up its flood program. Designed to help home and business owners from the financial ravages of damaging flooding, their policies are offered in all communities that are involved in the rules of participation.

Flood coverage protects homeowners or renters from damage to buildings and contents.

This includes the following:

• The structure, as well as the foundations of the building.
• Electrical and plumbing systems
• Central air conditioning, furnace, water heater
• Refrigerators, stoves, and any installed appliances, such as a dishwasher
• Carpet that has been installed over bare flooring
• Personal clothing and electronics
• Curtains
• Space heaters and air conditioners
• Carpeting that is not included in the coverage of the property
• Washing machines and drying machines

Flood reward claims typically include:
• Replacement Cost Value – Up to eighty percent of the amount needed to replace property damage on a single-family primary residence
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• Actual cost value: replacement costs at the time of loss reduced by physical depreciation

Note: The flood program always uses actual cost value to determine personal property reimbursement.