Flood Much?

If your basement was wiped out by the waters of Hurricane Irene or its aftermath, you may be wondering if there is anything you can do to protect yourself in the future. It seems like “hundred year” storms are coming our way on a more regular basis. In fact, in April of 2007 and March of 2010, much of Scarsdale was inundated, including houses that were not in a flood zone and had never been flooded before.

We were offered flood insurance about a year ago and turned it down. But now that we have seen that Mother Nature means business, we plan to reconsider our options.

To learn more about flood coverage, we spoke with Roz Binday of Advocate Brokerage in Scarsdale, who insures many Scarsdale homes and here is what we learned about flooding and insurance:

• Flooding is a standard exclusion.
• Federal flood insurance is available to those who live in “favorable flood zones” – which applies to most Scarsdale homes – for $405 per year.
• For those in flood zones federal flood insurance is available – but at a higher cost. Binday estimates that the insurance could cost up to $3,000 a year for a home that is in a designated flood zone.
• Federal flood insurance covers the home foundation including posts, pilings, and piers or other support systems. Also included is certain mechanical equipment necessary for the habitability of the building, such as furnaces, hot water heaters, clothes washers and dryers, food freezers, air conditioners, heat pumps, electrical junctions, and circuit breaker boxes.
• Federal flood insurance does not cover your furnishings, floor coverings, carpets, media systems or the pool table in your basement, if it is below grade. Strange as it sounds, not all basements are below grade.
• However, if the flooding goes up to the first floor, which is unlikely in a home with a full basement, federal flood insurance would cover up to $250,000 for the house and $100,000 for the contents with a $1,000 deductible.
• Don’t wait until just before a storm to request the insurance as there is a 30-day waiting period before it goes into effect, except in cases where flood coverage is required by a mortgage provider at the time of closing.

Some regular homeowner polices offer limited coverage for water damage; not from flooding, but for sump pump failure. In homes that have a sump pump that fails, policy owners can usually recoup $5,000-$10,000 for damage.

But the good news for those who are in acceptable flood zones, is that if you want more extensive flood coverage it is available from premium carriers at a price. If you’ve had to replace your possessions once already and want to be insured against future events, you may decide that higher premiums make sense for you.

If you have questions about flood coverage, ask Roz or Denise at Advocate Brokerage, 820 Scarsdale Avenue, Scarsdale,914.723.7100 ext. 104 or by email at: rozbinday@advbc.com