Early in my husband's military career, we opted to live in on-base military housing. One morning, I opened our outside storage room door to behold a shimmering pond of standing water. Horror struck, I realized that not only were several pieces of stored furniture ruined, boxes of keepsakes that hadn’t fit into our small housing unit were now sodden and unrecognizable. Overnight heavy rains had caused flooding in the storage units located behind our base housing.
And while the sentimental items could never be replaced, our hopes were that we could recoup some of the other damages through the renters insurance we’d purchased on moving in.
Wrong.
While some types of water damage can be covered by an insurance policy, such as damage from a burst pipe or roof leak, there are events that are not covered by a standard homeowners or renters policy. This includes flood damage from hurricanes, tsunamis, storm surges; water from overflowing rivers, snowmelt, or heavy rain; water damage from "earth movement" (i.e., earthquake, landslide, mudslide); sump pump failure; and more. (Source)
To further clarify, Forbes Advisor shares:
Generally, water damage that is considered “sudden and accidental” is covered (like a burst pipe) but not gradual damage, like a leaking bathroom sink. And flooding is not covered, such as damage from storm surge during a hurricane.
And consider this: Just one inch of flood water can cause more than $25,000 in damage to a home.
According to FEMA,
“Homes and buildings in high-risk flood areas with mortgages from federally regulated or insured lenders are required to have flood insurance. In high-risk areas, there is at least a 1 in 4 chance of flooding during a 30-year mortgage.”
But what if you're located in a lower risk area? Should you still purchase flood insurance? What if you don't own the property—are your belongings eligible for insurance against flood loss?
For answers to questions like these, especially as they pertain to military homeowners and renters, including those living in military housing, we consulted with the experts at USAA. Justin Morgan, Product Management Director with USAA, provided us with the following information.
Flood is specifically excluded under most homeowners insurance policies; often the only option for flood coverage is through the National Flood Insurance Program (NFIP).
However, the above exclusion is not always the case with renters insurance that covers personal property. Some renters policies will include coverage for flood for an extra fee. It is always best to speak with a licensed insurance professional or agent to discuss what specific exclusions may or may not apply.
Start here: Floodmart.gov. You should also contact your insurance agent or representative for specifics about your location.
In the past 5 years, all 50 states have experienced a flood or flash flood. As such, just because you live in a moderate to low risk area does not mean you cannot or will not experience a flood. Low risk does not equal no risk, as nearly 20% of all NFIP flood claims come from moderate to low risk areas.
Since your home and personal property are often your most valuable assets, it is important to seek coverage from flooding, even in low risk areas, to protect your financial security.
Flood insurance can provide protection to the building itself, as well as personal contents. To review all the various coverage options and any possible exclusions that may apply, you should contact a licensed insurance professional.
Whether you're a renter, homeowner, or living in military housing, being armed with the most current information regarding property insurance will help you avoid needless loss such as our family experienced.
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