Property insurance policies generally offer protection against a range of potential risks, but water damage from flooding is rarely included in their lists of protections. Homeowners and other property owners in Massachusetts who want to safeguard their buildings from floods frequently need to purchase a peril-specific flood insurance policy.
Flood policies are used to insure a variety of different properties. There are policies available for homeowners, condo owners, landlords and businesses. Even renters can often get coverage for their personal property.
Many property owners can benefit from having flood coverage in place, and some might even have to purchase a policy.
In regions where floods are frequent, purchasing coverage is often wise. It also can be required in certain areas that are especially prone to abnormal water patterns.
In regions where floods are unlikely, coverage is sometimes so affordable that it simply makes sense to get. Almost any place could flood, and small premiums can provide great peace of mind if the unlikely happens. Recovering from even a minor flood can be quite expensive, after all.
The National Flood Insurance Program is a federal assistance program that’s overseen by FEMA. The purpose of the program is to help property owners in regions that flood frequently afford coverage.
Property owners in participating communities (and only those in participating communities) can purchase substantially reduced policies. For those who can take advantage of the program, this is almost always the cheapest way to procure coverage.
Many communities in Massachusetts participate in the NFIP. FEMA lists participating communities on its website, or residents can contact an insurance agent who’s familiar with flood policies to find out whether they can take advantage of the NFIP. A knowledgeable agent will be able to quickly check whether the NFIP is an option, and they can assist with the purchasing process regardless of whether coverage is obtained through the program or the private marketplace.
Many flood policies cover a range of abnormal water patterns, which frequently include rising water levels associated with floods. Some of the other patterns that a policy might cover are abnormal waves, mudflows and mudslides.
(The exact incidents that any specific policy covers are determined by that policy’s paperwork.)
Issues like leaky faucets and frozen pipes generally aren’t an abnormal pattern that flood policies cover. Instead, these types of issues usually fall under the domain of homeowners, commercial property or a similar policy. They might be offered as a standard protection, optional protection or rider in such policies.
Additional living expenses coverage is typically used to help manage the extra living expenses that policyholders incur if they’re displaced from their residence by a covered disaster. It might cover meals, lodging or similar costs. The coverage is widely available through property policies, but it’s usually not part of flood policies.
Property owners who want this coverage even for a flood should talk with an experienced insurance agent. An agent who’s helped many people find flood policies will know how to get robust protections through a combination of flood and homeowners (or other property) coverage.
For help finding flood insurance that’ll protect your property and belongings, contact the independent insurance agents at Dempsey Insurance. Our agents have helped many Massachusetts property owners insure their buildings against floods, and we’re here to assist you too.
This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy, state and federal laws. For an actual description of coverage, terms and conditions, please refer to the applicable insurance policy or check with your insurance professional. The illustrations, instructions and principles contained in the material are general in scope and, to the best of our knowledge, current at the time of publication.
HOW WE ARE PAID FOR OUR SERVICES
Our insurance agency is committed to dealing fairly with complete integrity and transparency with consumers, other insurance producers and others with whom we work in providing insurance products and services. To that end, we provide this disclosure regarding our sources of compensation from insurance companies or other parties.
Our agency may receive compensation in the form of commissions paid by an insurance company, calculated as a percentage of premiums, pursuant to an arrangement with the insurance company. These commissions are for the service we perform in placing and servicing insurance policies on the insurance company’s behalf.
Our agency may also be eligible to receive other forms of compensation such as incentive or contingency payments or bonuses and/or supplemental commissions from insurance companies. These may be based on our aggregate historical or current performance with respect to a line of business or customer segment and not specifically related to any particular policy or policyholder.
Other insurance producers who perform service in placing and servicing insurance through our agency may receive compensation from our agency in the form of service fees as determined by our agency’s arrangement with such producer.
Our agency may hold premium or return premium funds temporarily, in which case our agency may receive interest or investment income on such funds.
Website Built & Powered by Jump Suit Group