How flood coverage works
Flood insurance is a separate policy with its own premium. It buys back the flood exclusion found in virtually all homeowners and commercial property policies. Many owners skip it because their property is not in a designated flood zone.
The National Flood Insurance Program (NFIP) is administered by FEMA. In cooperation with local governments, FEMA designates Special Flood Hazard Areas, and owners with federally backed mortgages in those areas are required to carry flood insurance. Many private insurers also issue and service NFIP policies. You can check your property’s flood zone on FEMA’s Flood Map Service Center.
The flood exclusion in standard policies covers rising water from rivers, streams and lakes, as well as coastal storm surge. Some courts have found coverage where wind drove the water, but standard property policies are not intended to cover rising water.
When an agent or surveyor gets it wrong
Sometimes an insurance agent or surveyor makes a professional error when determining a property’s flood hazard zone. That can lead to reduced or denied coverage, or to higher premiums, leaving the owner to absorb the cost of an often catastrophic loss. Where an agent acts in an advisory capacity, failing to recommend flood insurance can also be a costly error.
Mr. Sapourn has written expert opinions on improper flood zone designations and on the agent standard of care when placing flood coverage. If you believe your agent or surveyor misled you, call to schedule a free consultation.