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Most people have seen the commercials which start to run in the spring about Flood Insurance. Most all personal property policies have an exclusion for damage to property due to a Flood. The major exception is your AUTO. Yes your auto is covered if you carry "full" coverage better known as Comp & Collision.
Most all other "real property" insurance has an exclusion for flood damage. The best known way to obtain coverage is through the NATIONAL FLOOD INSURANCE PROGRAM. A government run program set up to cover only one cause of loss, FLOOD. Some commercial property policies will add coverage for flood but this is the exception.
It is available for both commercial or personal property and will cover either the building or contents or both. You are limited in the amount you can purchase; for personal lines 500,000 on a building with 100,000 in contents, commercial is limited to 500,000 per building and 500,000 contents. The other most important factor is that the Flood Program values most building and contents at ACV or actual cash value. Replacement valuation is available but on a limited basis.
Another item which is of importance is that there is a 30 day waiting period before a flood policy becomes effective. The waiting period can be eliminated if a bank or other financial institution requires flood coverage for a loan.
For more information visit www.fema.gov.
Posted On
2/19/2010 2:46:35 PM
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