NEWS RELEASE: Flood Insurance: Are you Covered?

Contact:
Communications Specialist
Jennifer Hillmann
720-879-2462
jennifer.hillmann@state.co.us

Flood Insurance: Are you Covered?

Centennial, Colo. – May 15, 2017 — The Colorado Division of Homeland Security and Emergency Management wants residents to be prepared for potential for flooding. It is a fact that 267 Colorado cities and towns and all of Colorado’s 64 counties have been identified as being at risk for flooding. Colorado’s landscape and ever-changing weather not only creates a beautiful state, but it also creates potentially powerful flood hazard.

Have you experienced flood damage to your home or business as a result of Colorado rainstorms? The first step to protecting your property is to meet with your insurance agent to review your policy. Flood damage is covered under a separate flood insurance policy and not under your general policy. Flood insurance is purchased directly from your insurance agent. A list of insurance agents is available on the National Flood Insurance Program (NFIP) website. The most important aspect of flood insurance is to understand when coverage starts and what is not covered by the policy.

 

Flood Preparedness Tips

• Secure a flood insurance policy from an insurance agent.
• Prepare your property to minimize flood damage. Follow the steps suggested by the NFIP to Prepare your House.

 

30-Day Waiting Period

• Typically, there is a 30-day waiting period from the date you purchase your policy before it goes into effect. Here are some of the exceptions listed on the NFIP website:
• If a building is newly designated in the high-risk Special Flood Hazard Area (SFHA) and you purchase flood insurance within the 13-month period following a map revision, there is a 1-day waiting period.
• If you purchase flood insurance in connection with making, increasing, extending, or renewing your mortgage loan, there is no waiting period.

 

FEMA Assistance

The FEMA Individuals and Households Program is not available for assistance unless designated under a major disaster declaration executed by the President. There are restrictions that come with this program as well as the intent to assist with a safe living space, not to return a structure to pre-disaster conditions. The FEMA website states, “The Individuals and Households Program (IHP) provides financial help or direct services to those who have necessary expenses and serious needs if they are unable to meet the needs through other means.

Want more tips and ideas? Head over to our website at www.READYColorado.com and read the full blog post, or follow us all week on our social media accounts for new posts on the Flood Insurance What is Covered topic.

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News Release: DHSEM Partners with Rocky Mountain Insurance Information Association to Remind You to Check Your Insurance Coverage

Call Your Insurance Agent Today to Check Your Insurance Coverage Limits

Contact:  Micki Trost
               Cell Phone:  303-472-4087
               EMAIL:  micki.trost@state.co.us

Denver - Thursday, May 29, 2014 - The Colorado Division of Homeland Security and Emergency Management (DHSEM) is partnering with the Rocky Mountain Insurance Information Association (RMIIA) to remind Colorado homeowners and renters to contact their insurance agents to review their insurance coverage.  Those insured should:

• Check the value of your insurance policy against rising local building costs each year.  You do not want to be caught under-insured after a disaster.
• Check the limits of your insurance coverage.  Will it cover floods, mudslides, landslides or mudflows?  
• Secure coverage for risks in your area today.  Basic homeowners insurance typically excludes "Difference in Conditions" such as flood, landslide, mudflow and earthquakes and may include a 30-day wait period before coverage goes into effect.

The RMIIA has posted information on their website to get you started in learning more about insurance coverage.  The information is posted at  http://www.rmiia.org/catastrophes_and_statistics/Mudslide.asp.  

Landslide, Mudslide & Mudflow

A massive mudslide endangering homes in Mesa County, Colorado... The tragic Washington State mudslide... These events raise questions about what's covered by insurance and what's not. Here's what you need to know:

• Homeowners, renters and business insurance policies typically exclude flood, mudflow, landslide and earthquake. Also visit:Homeowners Insurance Basics

• Landslides, mudslides and mudflow are considered different perils and require different insurance—separate from a homeowners or business policy. Landslides and mudslides are primarily earth movement, while a mudflow is caused by water picking up soil and turning into mud. With a mudflow, the primary ingredient is water, so flood insurance will typically cover parts of this loss. Click here to read about flood insurance and mudflow.

• The National Flood Insurance Program offers "Flood & Mudflow" coverage up to $250,000 for a homeowner and $500,000 for a business. Renters can buy policies for their personal contents. Flood insurance must be purchased 30 days in advance of a flood. Also visit: www.floodsmart.gov

• A "Difference In Conditions" policy includes coverage for flood, landslide, mudflow and earthquake. Depending on risk factors, such as the slope of your property or proximity to a cliff, a homeowner with a $300,000 house can expect to pay $1,000 or more per year for this coverage.

• A "Difference In Conditions" policy can only be purchased through a surplus-lines carrier as a stand-alone policy. Click here for details.

• Separate earthquake policies or endorsements to homeowners insurance policies exclude landslides that are not caused by an earthquake. Click here to read about earthquake and insurance.

• Prepare in advance: Evacuation Plan, Emergency Kit, Insurance Coverage, Home Inventory

• Insurance is tied to the "cause of loss" or what peril caused the damage. So, any coverage you have under your homeowners or business insurance policy does not apply if the peril is excluded—flood, mudslide, mudflow, earthquake. That means additional living expenses "ALE" or business interruption is NOT covered. Flood insurance also does not cover ALE or business interruption. Also visit: Homeowners Insurance Basics.

Increased Cost of Compliance can help with recovery, deter future damages

As Coloradans learned in September 2013, heavy rains along the Front Range can lead to extensive flooding. And, as many people have learned, recovering from floods can be a difficult task.

Now as the weather warms, state and federal officials are keeping a wary eye on snow melt and the potential for spring rains.

As part of their preparations, officials continue to urge flood insurance policyholders to make sure they understand what provisions are in their coverage. One part of the policy that might be especially important is the Increased Cost of Compliance (ICC).

NFIP policyholders who are rebuilding after 2013 flood may be eligible for up to $30,000 in ICC funds to cover the cost of bringing the home or business into compliance with local floodplain ordinances. ICC coverage is included as a part of the Standard Flood Insurance Policy.

To be eligible for ICC coverage, the community floodplain administrator must determine that a building has been “substantially damaged,” or sustained “repetitive damage.”

A building is considered to be substantially damaged when the total cost of repair equals or exceeds 50 percent of its pre-disaster market value.

A building is considered to have sustained repetitive damage when it has been damaged by floods twice over a period of 10 years, and the cost to repair the damage, on average, equals or exceeds 25 percent of its market value at the time of each flood event. This applies only if the participating community has a repetitive loss provision in their floodplain management ordinance, and an insurance claim payment is made for each of the two flood losses. To find out if your community has a repetitive loss provision, contact local officials or your insurance company.

To make an ICC claim, owners may decide to:

• Elevate: Raise a home to or above the flood elevation level adopted by a community;
• Floodproof: Make a building watertight through a combination of adjustments or additions of features to the building that reduces the potential for flood damage;
• Relocate: Move a home out of harm’s way; or
• Demolish: Tear down a flood-damaged building.
• Claims for ICC benefits are filed separately from contents or building loss claims. A claims representative will be assigned to help prepare the ICC claim.

For more information on flood insurance or ICC coverage, visit floodsmart.gov or call 1-888-379-9531. Remember that NFIP policies go into effect 30 days after purchase. The time to buy is now.

Be Proactive About Flood Insurance

Whether you own a home or a business, you need to be proactive when it comes to flood insurance. With heavy snowpack this year, there is strong potential for spring flooding. In addition, wildfires devastated Colorado over the last few years destroying vegetation. The burn areas are more susceptible to flooding, because there is no vegetation to absorb the moisture or slow down the flow of sediment and mud in rainstorms.

Do not delay in obtaining flood insurance coverage. The National Flood Insurance Program (NFIP) has a 30-day waiting period from the time the flood insurance policy is written and the premium is paid until it goes into effect. A policy purchased even a few weeks from now might not be in effect for spring runoff.

Know your insurance policy and what it covers. NFIP covers the structure of your building only. It is recommended that you also carry a basic NFIP policy on your contents. A basic policy covers the following:

• Up to $250,000 for a home; up to $500,000 for a building.

• Up to $100,000 for personal contents; up to $500,000 for business; up to $100,000 for renters.

• NFIP covers ONLY the depreciated value of your household goods. It does not include replacement value.

• Fine art, collectibles, jewelry, and furs up to $2,500.

• NFIP does not cover such items as autos, machinery, non-household related items, such as yard tools, livestock, lawns, trees, shrubbery, fences, business supplies and equipment.

To protect yourself in the event of a flood:

• Inventory your home. Assign everything a value, so that you have a starting point in case of disaster.
• Document any purchases. Keep receipts in a safe flood-proof place.

The National Flood Insurance Program (NFIP) offers flood insurance to homeowners, renters, and business owners in communities that are part of the NFIP program. NFIP is administered by the Federal Emergency Management Agency (FEMA), which works closely with 90 private insurance companies.

Contact an agent or your county or city floodplain administrator to find out whether your community is participating in NFIP. Your agent can advise you on whether you have adequate coverage for your home and valuables. For more information on flood insurance, visit floodsmart.gov.

Read the joint news release from FEMA, State of Colorado and SBA.

Now is the Time to Buy Flood Insurance

With mountain snowpack high and rainy months on the way, now is the time to buy flood insurance, say state and federal emergency management officials.

In most circumstances, there is a 30-day waiting period from the time the policy is written and the premium is paid until the policy goes into effect. That means a policy purchased today, April 2, would not go into effect until May 2. It also means that a policy purchased a few weeks from today might not be in effect when spring runoff starts.

National Flood Insurance Program policies are available for homeowners, businesses and renters and include coverage for the structure and contents. Policy limits are $250,000 for residential structures and $100,000 for residential contents. Business structures and contents can be insured for up to $500,000 each. Renter content policies are available with a limit of $100,000.

As many survivors of last September’s disaster can attest, small creeks and even dry ditches can quickly turn into wide raging rivers. In fact, most flood insurance payments across the country are paid out to people who did not live in a Special Flood Hazard Area, or floodplain.

People who do live in a Special Flood Hazard Area, and who have a federally backed loan, are required to carry flood insurance. Also, anyone who lives in an A or V flood zone, and who received Individual Assistance from FEMA for last September’s flood damage, must have flood insurance or they will jeopardize federal assistance for any future flood declaration.

Flood insurance is available only to people who live or own businesses in a participating community with an approved flood hazard plan. To find out if you live in a Special Flood Hazard Area, contact your floodplain manager through your local or county government.

People with flood insurance can collect payments for damages sustained in most flooding events, even if the flooding does not result in a disaster declaration.

The process and the rules can get complicated, so emergency officials urge anyone thinking about flood insurance to contact an insurance agent for more information. To find an agent or for more information on flood insurance, visit floodsmart.gov or call 1-888-379-9531.