In the aftermath of Hurricane Irene, we have had several questions about flood insurance. Many people believe their standard homeowners’ policy would cover them in the event of a loss. However, a standard homeowners’ policy will not provide coverage in the event of flooding. Water damage resulting from a burst pipe is in fact covered, which has led people to falsely believe that all water damage is a covered loss.
The National Flood Insurance Program (NFIP) is a federal initiative which allows a homeowner to purchase a standard flood insurance policy.
Basic policies typically cover:
- structural damage
- furnace, water heater and air conditioner damage
- flood debris cleanup
- floor surfaces such as carpeting and tile
Typically, the NFIP provides coverage for a home up to $250,000 and its contents up to $100,000. If your specific needs exceed those policy limits, we would be happy to help you add supplemental coverage.
Additionally, McSweeney & Ricci would like to caution all policyholders about a scam related to flooding. When severe weather strikes parts of the country, many vehicles may become heavily damaged by water. As a result, some vehicles are declared a “total loss” by insurance companies and subsequently sold as salvage. The National Insurance Crime Bureau (NICB) is cautioning potential car buyers that some scam artists are profiting by selling these salvaged vehicles and masking any evidence that the car was damaged by water. To avoid this scam, the NICB has created VINCheck , a free service which allows consumers to search salvage records of participating insurance companies.
For more information on flood insurance and to make certain you are protected contact McSweeney & Ricci today.