Spotlight on - Flood
This month’s Spotlight on is all about Flood Insurance – what is Flood Insurance, why you need it and how we at TPC can help you talk to your agent and understand the steps involved with getting Flood insurance. We worked our New Jersey Territory Manager, Paula Pacheco, and the National Flood Service to help break down all things Flood related.
What is Flood Insurance?
Flood insurance is a type of property insurance that covers a dwelling for losses sustained by water damage specifically due to flooding.
What is the difference between a homeowner’s insurance policy and flood insurance policy?
The difference depends mostly on what exactly caused the flooding. If water enters your property from an opening in the roof, walls, or windows or if the water leaks from your water pipes or appliances (water heater, washer), it should be covered under your homeowners policy. But if the flooding is an accumulation of surface water from outside your property that is what is covered under your flood insurance policy.
What is officially considered a Flood?
In simple terms, a flood is an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties. For example, damage caused by a sewer backup is covered if the backup is a direct result of flooding. If the sewer backup is not caused directly by flooding, the damage is not covered.
Flooding occurs when water – which good be an overflow of inland or tidal waters or usual and rapid accumulation of surface waters – rises and causes damage to your property and at least one other property.
Why do I need Flood Insurance?
Believe it or not every home has some level of flood risk and should have a certain level of coverage. Your property could be vulnerable to excess rainwater, storms, river levels, and other factors.
The Dangers of Flooding
Floods are the most common natural disasters in the US. On average, floods can cause around $6 billion in property damage. With even just a few inches of floodwater, the damage can be upwards of tens of thousands of dollars.
Is Flood Insurance Mandatory?
It depends on where your home is location. Some homes are in mandatory flood zones and a flood policy is a must have. However, at the end of the day all properties are at risk – more than 20% of claims come from properties outside of the mandatory zone.
What Factors Will Affect Your Premium?
The price you will pay for flood insurance will depend mainly on the following factors:
- Flood risk zone where your building is located
- Occupancy Type (one family house, two-family house, three-four family house, single-family condo unit) Use (residential vs. commercial)
- Residence (primary residence vs. secondary home)
- Foundations (slab on grade, basement, crawlspace, elevated, etc.)
How can TPC Help?
TPC makes it easy for agents to sell flood insurance through the use of our one-click single-sign-on/Flood Button. Once an agent completes a homeowner quote within our agent portal The Key, an estimated premium for flood insurance is also being calculated. The flood quote appears on the same page as the homeowner's quote which makes it easy for an agent to discuss a flood program with their clients. We’ve made it a seamless quote experience for our agents by eliminating the repetitiveness of data entry for client and risk details into separate websites. TPC Flood Button has full integration between The Key, National Flood Service (NFS) for the NFIP program, and AON Edge for a Private Flood policy option. Offering clients a homeowner and flood policy all at the same time has never easier. If your agency does not have access to the TPC Flood Button; contact your TPC Territory Manager to have you set up.
TPC gives their policyholders 3 options/ways to protect their home and personal belongings in the event of a flood. For those insureds who live in a mid to high flood zone area; a flood policy is written through National Flood Service (NFS) for the NFIP program or AON Edge* for a Private Flood policy are available by contacting your agent. If the risk is in a low-risk flood zone our Basic Inland Flood Endorsement* can be added to your current policy for protection in the event of a flood. Talk to your TPC agent for the details on this exclusive coverage from our company.
*eligibility for this program is based on risk location.