Archives October 2022

Flood insurance in Florida is essential. In the coming decades, there is a 26% risk that severe flooding may occur on one-fourth of all Florida properties. As a property owner, if you do not have flood insurance, your possessions are at risk, and you face the danger of having to pay for potentially expensive repairs out of pocket.

In an effort to provide you with dependable information concerning flood insurance, we are sharing four common misconceptions.

#1 Homeowners Insurance Covers Flood Damage

Homeowner’s insurance covers a variety of losses and occurrences including fire, powerful winds, and even theft, but many of these plans exclude losses brought on by water.

In fact, if you are a homeowner, it is important to note that most homeowner’s insurance policies do not provide coverage for flood-related damage. As a result, if there is a flash flood, hurricane, or other water-related catastrophe, you may be at risk.

#2 People in Low-Risk Areas Do Not Need Flood Insurance

It’s a reasonable assumption to think that because you live in a low-risk location, you don’t need to invest in flood insurance for your home. Unfortunately, there is an error in this thinking since areas that are regarded as low-risk flood zones account for around a quarter of all flood claims in Florida.

It’s important to understand that a lower risk does not equate to zero danger. Therefore, take the time to carefully examine your homeowner’s policy and your flood insurance coverage details, or consult a professional insurance representative to determine your coverage status.

#3 Only Homeowners Can Purchase Flood Insurance

In Florida, there are more than 1.5 million condos, many of which are located close to flood plains. Condos on lower floors are just as susceptible to flooding as nearby single and two-story homes.

The National Flood Insurance Program (NFIP) was established enabling homeowners, landlords, and renters to purchase flood insurance to safeguard their property, residence, and possessions.

If you are a renter, you can and should consider purchasing flood insurance to ensure that your residence and belongings are insured in the case of flooding.

#4 Flood Insurance Covers All Damages

People with flood insurance frequently run into financial difficulties because they’ve made the error of thinking that this type of insurance covers all damages associated with a flooding event.

There is a list of exclusions that apply to flood insurance much like most types of policies. This fact makes it very important that you familiarize yourself with your current policy or ask specific coverage questions when shopping for flood insurance.

It’s also important to note that a typical flood insurance policy does not cover living costs, such as rent, while homes are being repaired. Depending on the catastrophe, you could need alternate housing for months or even years.

Protect Your Home from Flooding

At GWK Insurance, we assist people in finding the insurance coverage that will best suit their individual needs and is within their budget. To find out more about how we can get the best coverage for you so that you and your possessions are protected in the case of flooding, contact us for a consultation.

In Florida, natural disasters such as hurricanes, floods, sinkholes, and even wildfires are all a very real possibility. Wildfires are the most frequent natural disaster in the state, despite the fact that its location between the Gulf of Mexico and the Atlantic Ocean renders it particularly vulnerable to powerful storms. This partially explains why home insurance rates in disaster-prone locations are generally higher than the national average.

A typical home insurance policy does not provide coverage for most natural disasters. Following a natural disaster, claims could be so high that insurance firms would go bankrupt if all claims were permissible. As a result, insurance providers are reluctant to offer coverage for certain dangers.

Homeowner’s Insurance and Natural Disasters FAQs

Let’s examine a few frequently asked questions surrounding natural disasters and homeowner’s insurance.

#1 Is My Home Protected from a Natural Disaster?

This is a broad question that depends on the specifics of your homeowner’s policy, and the location you live in impacts the coverage greatly. For example, the majority of plans include coverage for fire damage, but if you reside in a wildfire-prone location, your coverage may differ slightly. This is why it is crucial that you check your policy closely or go to an experienced insurance professional BEFORE disaster strikes.

The following damages are frequently covered by homeowner’s insurance. However, always check your insurance policy to ensure that these are indeed covered.

• Damage due to lightning and fire
• Wind or hail damage
• Damage caused by smoke
• Volcanic eruption or damage from ash
• Weight of snow, ice, or sleet causing collapse

#2 Why Is My Home Not Protected from a Natural Disaster?

It is certainly understandable to be concerned that your homeowner’s insurance may not protect you from a literal force of nature. However, due to the possibility of expensive natural disaster claims, the majority of natural disasters are not covered by homeowner’s insurance. Since many natural disasters result in total losses, private insurance firms simply cannot bear the risk.

Be aware that the following natural disasters are usually NOT covered by typical homeowner insurance policies:

• Floods
• Sinkholes
• Earthquakes
• Landslide or a mudslide

#3 Do I Need a Separate Policy to Have Flood Coverage?

Contrary to popular belief, homeowner’s insurance policies do not cover flooding. Flood insurance must be purchased separately. You will need a separate policy, such as from the National Flood Insurance Program, or NFIP, to be covered against flood damage.

Many mortgage lenders require flood insurance, especially in light of the fact that so many homes, especially in Florida, are situated in flood zones with varying degrees of risk. You can either obtain flood insurance from the government or from a private company.

#4 Is There a Special Policy for Hurricane Coverage?

There isn’t a special hurricane policy that you should seek out. In actuality, hurricane damage is produced by a variety of factors, including wind, floods from storm surge, and rain. As a result, the question of whether a residence is covered by insurance during a hurricane generally depends on whatever aspect of the storm, or its aftermath, caused the specific damage.

In many instances, homeowner’s insurance can protect your home, personal belongings and many other items located on your property if a hurricane causes damage or complete destruction. You will need to meet your hurricane deductible, and your insurance company will likely cover the remainder up to your policy’s maximum limit.

Need an Experienced Insurance Professional?

Your homeowner’s insurance will cover damage from some Florida natural disasters, but you will need to buy additional insurance to cover damage from floods, hurricane winds, windstorms, and some types of sinkholes.

At GWK Insurance, we take pride in helping our clients feel assured should disaster strike. To find out more about how we can get the best coverage for you and your family, contact us today.

Did you know that one of the most frequent and expensive natural disasters that happens in the United States is flooding? Flooding can occur for a number of reasons, such as river overflow, excessive rainfall, storm surge from tropical storms, and of course, hurricanes.

Despite the common nature of flooding, only a small percentage of property owners get flood insurance. The good news is flood insurance is a valuable investment that can be purchased at a variety of price points. With the proper coverage, you can have peace of mind that both your property and its contents are protected.

Flood Insurance Coverage

Understanding the value of flood insurance coverage may make it even easier to seek it out and secure it for your specific needs. There are a few important things to consider when deciding whether you should invest in flood insurance.

Flooding is a Real Risk in Florida

No state has a more vulnerable stretch of shoreline as Florida. The Sunshine State is the ideal location for sun, sand, and unfortunately, floods primarily because of its more than 1,300 miles of coastline.

If you don’t live near the coast, you shouldn’t’ get too comfortable in thinking that your property is not at risk. With a population of around 21 million and the average residence sitting at an elevation of only six feet above sea level, the majority of Floridians should consider their property vulnerable.

Your Homeowner’s Insurance Does Not Protect You Against Flooding

Many types of water damage are covered by typical home insurance plans, but flood damage is not. Flood insurance can be a wise investment, given that just one inch of water can cause as much as $25,000 in damage.

Keep in mind that the goal of flood insurance, like the goal of other insurance plans, is to prevent you from having to pay costly repair and replacement costs in the event of a flood or disaster. Flood insurance has significant return on investment for those who experience flooding, as they have their home and belongings covered.

What Does Flood Insurance Cost and Cover?

Depending on your needs and budget, the cost and coverage of your flood insurance will vary. The National Flood Insurance Program (NFIP), which was created to lessen the socioeconomic impact of floods, offers solutions.

The NFIP imposes a cap of $250,000 for any structural damage to the property brought on by flooding and a cap of $100,000 for actual cash value coverage for any loss of personal possessions. It’s important to note that water damage from other sources (such as leakage or seepage claims), or damage brought on by wind-driven rain, are not covered by flood insurance.

Looking for Coverage?

For some people, the need and choice for purchasing a separate flood insurance policy can seem obvious. However, that may not always be the case for those not in specially designated flood zones. The fact is that without protection in place, you and your family maybe at risk financially. Flood coverage is your best protection.

At GWK Insurance, we assist people in finding the insurance coverage that will best suit their individual needs within their budget. To find out more about how we can get the best coverage for you and your family, contact us today.