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How flood insurance works

how flood insurance works

RENO, Nev. ( & KRNV) -- Severe thunderstorms continue to hit our region, causing flash floods in neighborhoods and even around businesses.

So have you thought about getting flood insurance? Agents say it might not be a bad idea. "Well flood insurance is going to cover exactly what you ask it to cover, so if you ask it cover your home it’s going to cover your home, if you ask it to cover your contents it will cover your contents,” said Agent & Risk Manager, Balsiger Insurance Cody Johnson.

But there are limits on it. "For residential properties it’s going to be $250,000 dollars is the max coverage you can buy for flood insurance, your contents typically $100,000 is going to be maximum and if you have other structures on your property you can also cover those structures.”

However, Johnson says flood insurance doesn’t cover anything in your yard. "If there’s anything outside it’s not going to be covered, if you’re worried about property that’s outside I just recommend taking it in the house if it’s something that’s reasonable

to take inside the home and then once it’s in there, it’s like personal property."

One downside to new flood insurance, it won't kick in for a few weeks. "Well if they bought flood insurance today, typically there is a 30 day waiting period before the flood insurance kicks in.”

Which is why Johnson says it’s important to know whether or not you live in a flood risk zone. "And you would know that usually by your lender, the lender will always almost know that right off bat, but there has been mistakes made so if you have questions I recommend talking to an insurance agent about it."

Johnson also says flood insurance can be expensive, so is the annual fee worth it? "A typical policy may start in at $400 to $500 depending on the deductible you choose, I would recommend a higher deductible on flood insurance because really it’s a disaster.”

Johnson also says if you know a flood is coming and you happen to live in a two story home, he recommends moving stuff upstairs.

Category: Insurance

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