Telamon Top 5 - Tips for Avoiding the Most Common Natural Disaster

 

“It’s just devastating. Your whole life you work hard, and then you get wiped out like this,” said Barry Sinewitz, owner of a Massachusetts print shop damaged after a May 2006 flood. It was his first – and he had no insurance. “Flood insurance just wasn’t something we thought about,” sighed Jason Tevepaugh, inspecting the extensive damage to his nearby mill. “…You just have to chalk it up as a loss.” At Telamon, we want you to know there is something you can do to avoid this tragedy: Get flood insurance. While millions of Americans assume floods happen somewhere else to someone else, they can happen almost anywhere. 

 

As we enter hurricane season, here are our top 5 tips for making sure you are water tight.

 

 

The first defense against flood damage is to find out if you are in a high or low risk flood area. In both of the above cases, Barry and Jason seemed to ignore obvious risk factors: Jason’s 19^th century mill was adjacent to a brook. When the waters rose, the dam broke, filling up the mill’s lower floors. The mill was also located next to a new development which may have affected water flow patterns. Barry’s print shop was located near a brook that had periodically flooded in the past. By logging on to the National Flood Insurance Program (NFIP) website, you can enter your property address to see your relative risk, and link to flood maps of you area. But beware: If you thought you weren’t in a flood prone area; you now may be. These maps are continually being updated as FEMA takes into account more severe storms nationwide and increased real estate development that makes water absorption more difficult. For example, maps in El Paso County, Texas could designate as many as 7,000 additional homes in a high risk zone because a major levee failed to meet government standards. Other factors can also affect your susceptibility, such as overburdened or clogged drainage systems, new construction that affects your property, weakened dams, and saturated soil. The main causes of flooding may surprise you, as will videos of actual scenarios that resulted in floods. At Telamon, we can step you through some of the unique factors that may impact your risk of flood. To contact a Telamon representative for a quote, click here. 

 

Okay: Let’s say, given the risk factors in your area, flood insurance makes good sense. Now what do you do?   Because basic homeowner and business insurance policies don’t cover damage from flooding, the best bet is the National Flood Insurance Program (NFIP). This program, in place since 1968, enables the government to act as the underwriter who assumes financial risk for damages, while relying on private insurance agents, such as Telamon, to sell policies. In fact, if you are using a federally backed mortgage to buy a property in a high flood risk area, the lender may require it. Flood insurance is available only if you live in one of 20,300 communities that participate in the program -- communities that have agreed to take steps to reduce flood risk. Generally insurers recommend replacement cost coverage for a home or business and its contents. For a home, the policy limit is $250,000 for the building and $100,000 for contents. The average premium for a yearly flood insurance policy is $542. There is also a lower risk, preferred policy for those in low to moderate risk areas, that can cost as little as $119 per year. But for some, like John R. Rosenthal, owner of a Southbridge, Mass. building flooded in October 2005, the federal program insurance coverage was a “huge dose of reality.” “…There’s no coverage for (tenant) relocation, none for business interruption, not even a full replacement cost from what I can tell for restoring the buildings…”. If you think you need more coverage than is offered by the government program, you can purchase a more comprehensive alternative, although the premiums can run high. For help determining the right combination of insurance for you, contact Telamon Vice President Greg Susco.

 

 

Eight-hundred pounds of pizza cheese, 40 giant bags of flour, and 30 cases of beer were some of the $30,000 of losses Prince Pizzeria suffered in a May 2006 New England rain storm. On the same street, six racks of prom dresses, $60,000 of hamburger meat, and a $20,000 digital copier were soaked inside other stores. These are just a small sample of the many items business owners lost. But personal property coverage is not automatically included in standard flood insurance policy. Only one in four homeowners with flood insurance are also covered for their possessions, or ‘contents.’ But, without coverage for material losses such as TVs, computers, furniture, washers and dryers, stock inventory, and equipment, your financial security may be at risk. Experts recommend you consider purchasing “contents” or property insurance. In some cases, there is “contents only” coverage for renters, or businesses that lease their buildings. There may also be coverage for lost days of work, or sales, while a business is undergoing repairs, or for temporary housing costs while your property is undergoing repairs. For additional information on Telamon’s Property & Casualty insurance, click here. 

 

A mid-western newspaper produced a paper for 3 weeks from a computer in the editor’s living room while their offices sat in two feet of flood water. The owner of a senior services center found herself drying out patient medical records in the basement of her home. As devastating as a flood can be, your ability to get back on track can be improved if you are organized before disaster strikes. Experts recommend keeping an inventory of items in your property, as well as receipts for big purchases, in a safe place to make it easier to file a claim and minimize potential disputes. There are many different ways to create the inventory, including writing everything down in a notebook, taking pictures, putting information on your computer, or walking through your property filming and describing contents at the same time. You can also sign up for free on-line software that makes creating and keeping an inventory easy.  Other pre-flood precautions include creating and safeguarding a file of important personal information such as life and property insurance policies, a copy of your deed, financial records and bank account numbers, wills, trusts, and medical directives. You can also take steps to secure your property by making sure sump pumps are in good working order, gutters are cleared, and fuel tanks are anchored. For additional tips on preparing for a flood, visit the NFIP website.

 

In the event you end up left behind in a deluge while Noah’s Ark sails away, there are immediate steps you should take after a crisis hits. These include: calling your insurance agent as soon as possible to find out how to get the claims procedure rolling; taking pictures immediately, especially if you have to make temporary fixes before an adjuster can see the damage to your property; and hanging onto receipts for repairs and expenses while you are away from your property: You may qualify for reimbursement for these expenses. Before you reenter a flood-damaged building, check for structural damage. Also, take photos of any flood waters in your home or business, and save any damaged personal property. Finally, keep the power off until an electrician has inspected your property for safety. For additional information on steps to take after a flood, visit the NFIP website. 

 

  

For the most common and costly natural disaster in the United States, surprisingly little is known by millions of property owners about flooding and flood insurance – the only insurance that reimburses property owners for damages in the event of a flood. While flood insurance may not make sense for everyone, here are some important facts to consider in determining if it’s right for you.

 

 

 

 

 

 

 

  

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