Is Your Flood Insurance Coverage High Enough?

Flash floods continue to devastate many parts of the nation that, before a few years ago, considered themselves minimal flood risks. Experts say that factors from more rain due to possible climate change to less absorption of groundwater due to greater urbanization are uniting to make flooding more likely just about everywhere. FEMA announced in 2010, “Flooding is the most frequent severe weather threat and the costliest natural disaster facing the nation.”

Wayne Klocko, property claims manager for Liberty Mutual, said, “Businesses in areas you would not normally consider to be at high risk of flooding are having to reconsider their coverage and loss control strategies.” Therefore, the time has come to ask yourself if your flood insurance coverage could handle it if one of those ‘five hundred year’ floods like the ones that annihilated Tennessee a year ago hits YOUR town.

It is a particularly relevant question right now because as we speak FEMA is in the process of revising its FIRM’s (that’s Flood Insurance Rate Maps) and if you suddenly find yourself in a higher-risk area than you were before, your flood insurance premiums will skyrocket. If you already have a set contract, however, they are not allowed to raise the premiums. This makes it the perfect time to look into flood insurance, particularly if you are currently anywhere near an existing flood zone.

Too many companies find out too late that their flood insurance coverage was not what they assumed it would be. Contact your flood insurance provider today and talk about your coverage. In addition, ask about DIC (Difference in Conditions) coverage. Are you still covered if FEMA does decide to change your flood zone? Many businesses are not because their contract stipulates payouts based on a particular level of flood danger. When it comes to flood insurance, be prepared. Re-examine your flood insurance today.