What flood insurance does and does not cover

By SALLY HO SEATTLE AP Though natural disasters cycle across seasons and regions in the U S it s often a shocking discovery for property owners how expansive and expensive flood and water damage can be when a major storm devastates their homes businesses and communities That s because oftentimes insurance doesn t cover what the policyholder thinks it does or thinks it should The disappointing surprise is that while the standard home insurance framework does cover fire and wind damage even good property insurance typically doesn t cover things like flooding and earthquakes which usually require a special and separate plan for each Here are the things to know about flood insurance FILE Water overflows from the Canyon Lake spillway near New Braunfels Texas Friday July adding to the flood waters along the Guadalupe River AP Photo Eric Gay File Who has flood insurance Largest part people who have flood insurance are required to have it Although countless property owners have the option of purchasing flood insurance it is mandated for government-backed mortgages that sit in areas that the Federal Urgency Management Agency deems highest danger Various banks require it in high-risk zones too But greater part private insurance companies don t carry flood insurance leaving the National Flood Insurance Project run by FEMA as the primary provider Congress created the federal flood insurance initiative more than years ago when a multitude of private insurers stopped offering policies in high-risk areas FEMA s Flood Map Utility Center has an online tool to check your area FEMA notes even a chance of flooding is considered high pitfall because it amounts to a -in- chance of flooding over the life of a -year mortgage An American flag sits on a destroyed bridge over the Guadalupe River at Arcadia Loop and Bear Creek Road after flooding in Kerrville Texas on Wednesday July AP Photo Gerald Herbert Who doesn t have flood insurance Homeowners in high-risk areas who should have it sometimes decide not to get it Someone who pays off their mortgage can drop their flood insurance once it s not required Or if they purchase a house or mobile home with cash they may not opt for it at all The rest of us are just rolling the dice even though experts have long warned that flooding can happen just about anywhere because flood damage isn t just water surging and seeping into the land it s also water from banks as well as mudflow and torrential rains Mark Friedlander spokesman for the Insurance Information Institute an industry group commented only about of U S households have a flood approach primarily in the coastal areas prone to hurricanes That rate has remained steady in up-to-date years despite the increasing frequency of severe flooding events including in areas that are not formally considered by the ruling body to be high pitfall Lack of flood coverage is the largest insurance gap across the country Friedlander mentioned in an email Ninety percent of U S natural disasters involve flooding and flooding can occur just about anywhere it rains What flood insurance covers Even if a homeowner does have flood insurance the coverage may not be enough to make a policyholder whole again FEMA s National Flood Insurance Initiative only covers up to for single-family homes and for contents Renters can get up to for contents and commercial flood insurance will cover up to There are concerns that such flooding coverage limits are not robust enough especially at a time when circumstances change is making strong hurricanes even stronger and making storms in general wetter slower and more prone to intensifying rapidly Related Articles Here are chosen things you can do to be better prepared for major flooding Texas floodwaters damaged crops and endangered livestock Now farmers and ranchers are cleaning up Urgent down the force of water in the Texas floods FACT FOCUS Trump misrepresents facts about wind power during Cabinet meeting Layoffs hit UMN Extension food educators as MN grapples with Trump s budget And what typically happens to the people without flood insurance in a major storm is that they can try to recover specific money from their standard home insurance but may end up in a fight to determine what damage is or isn t wind versus rain or even wind-driven rain Don Hornstein an insurance law expert at the University of North Carolina noted the line between wind and water is a thin but very clear line that technical experts can determine Should there be a proverbial tie the law favors the insurance company If the house was simultaneously destroyed by flood and concurrently by wind it s not covered by private insurance Hornstein disclosed