Flood insurance, is there a need?

With over 49 fires devastating the Western States it may seem odd to discuss a topic as totally different as flood insurance. Unfortunately the recent floods we had after the rains and the potential for a long needed El Nino have made me reconsider my thinking on flood insurance.

According to the NFIP, the National Flood Insurance Program, nearly 20% of flood insurance claims occur in moderate to low risk areas! Most of Tehachapi would fall into this classification, but after looking at all the flooding in our city after the recent rains this situation may change. Just a few inches of water can cause tens of thousands of dollars in damage.

Keep in mind that while some water damage is covered under most homeowners policies, flood damage is not! Sewer damage, burst pipe (if not caused by a flood) are covered by homeowners, but after that, when it comes to a flood, the homeowner is basically on his own unless he has the additional flood coverage. The other thing to remember is that flood insurance has a 30 day waiting period before the policy goes into effect. So waiting until your neighbor is building an ark would be a little to late to obtain coverage.

Coverage can only be purchased from an insurance agent so it is important to find someone who can explain to you what is and isn't covered. Flood insurance works a little differently than a normal policy. Items like additional living expense in case of loss, trees, plants, wells and septic systems or damage caused by moisture mildew or mold that could have been avoided are not covered by flood – but your building, its foundation, electrical and plumbing systems, debris removal and attached garage are covered in case of loss.

As with any kind of insurance the risk is always up to the individual. Whether or not we are comfortable with the potential for risk that a flood may present is up to each one of us. Remember that in the last five years all 50 states have experienced floods or flash floods. In my mind, for myself and my clients I'll definitely be mentioning this coverage with the potential for heavy rains this fall and winter.

Marty Pay has been a Farmers Agent for 35 years. His office is at 121 East F St. Tehachapi (661) 822-3737