If recent storms, like Irene and Sandy, have taught us anything, it is that your home does not have to be a coastal property to be vulnerable to flooding. In fact, one out of every three flood claims occur in a FEMA designated “preferred flood zone.” For most of us, protecting your home from flooding is as easy as purchasing FEMA sponsored national flood insurance. FEMA policies provide $250,000 of building coverage and $100,000 of contents coverage above the basement. Although the cost is subject to change, just to give you an idea it is only $417 for the limits mentioned.
But, what if your home is valued above $250,000? What if your basement is finished? How will you cover the expensive furniture, table games, wine cellar, and elaborate electronics below the first floor? The answer is Excess Flood Insurance.
Excess Flood Insurance provides coverage above and beyond the limits of the FEMA flood policy. Also, many excess flood policies provide coverage to areas where the FEMA policy does not, like the basement. Depending on the flood zone, coverage limits are often customizable. So if your concern is that $250,000 in building coverage is not enough, but you do not believe coverage up to the total replacement cost of your home is necessary, there is a policy for you. For homes located in preferred zones, excess flood coverage can be surprisingly affordable. For coastal areas and properties located on lakes and rivers, an excess flood policy may be a wise investment…especially with the crazy weather patterns we have recently experienced. The message here is that Advocate Brokerage can help tailor coverage specific to your needs and within your budget.
Many elite carriers, including ACE, Chartis, Chubb and Fireman’s Fund offer privatized flood solutions. Depending on the risk, coverage above the $250k/$100k FEMA threshold may be available with these carriers. Other companies, like PURE, offer endorsements directly on the home policy that allow coverage to be applied to areas where an attached FEMA policy is lacking. There are many secondary markets offering an array of excess flood products.
If interested, please contact Advocate Brokerage to discuss your concerns. We will conduct a thorough examination of what the market has to offer and prepare a personalized excess flood solution.