If you live in the Adirondacks near one of our beautiful lakes, streams or other waterways, do you need flood insurance?
With the storms and flooding going on in the South from Hurricane Harvey, I thought it would be a good time to talk about flood insurance. This seems to be a confusing topic for some, which can lead to frustration at the most inopportune times.
Flood Damage Is Not Covered By Homeowners Insurance
Most people have some type of homeowners insurance policy for their home (it is required for almost all homes when financed through a mortgage). Depending on the options chosen with the policy, many different types of things could be covered, including:
- Fire damage
- Wind damage
- Property that is stolen
- Liability protection
But what is not covered by the policy is flood damage. If a storm hits and floods your basement and/or home, without separate flood insurance the home owner is responsible for any damages.
Why Is Flood Insurance Not Covered Under Normal Homeowners Insurance?
The main reason why it is not included in the homeowners insurance policy (and why many insurance agencies choose not to offer flood insurance at all) is because for the most part the only people who would purchase the policy would be people living in areas that flood. So insurance companies would end up paying out more in claims than they would be able to collect in policy charges.
If I Live In Lake George To I Need Flood Insurance?
For those living near water, the possibility of a lake or stream overflowing its banks, however remote, is a scary thought that can keep you up at night. If it did occur, it would be something that you had no control over, and could cause thousands and thousands of dollars in damage.
But is it likely? And if a flood happens, how much damage would it cause?
These are questions that don’t have concrete answers. But you have resources at your disposal to get a feel for what type of risk is out there, and if you are willing to take those risks.
Talk to your Adirondack neighbors who have lived in the area for decades. They will know how high water has come during the worst storms (think Tropical Storm Irene in 2011). If it gets that high again, will it impact your home? Take into consideration any erosion or new development that may have taken place over the years that may increase or decrease the chances for a flood in the area.
You can also head to your town hall and ask if there are any documents regarding flood plains in the area. Or visit the New York DEC website for the latest information.
As you think about how likely or unlikely a flood of your home would be, you’ll want to balance the cost of the insurance (unfortunately, like many things, it has gotten more expensive over the past few years) against what it would cost to replace what you would lose in a flood.
Whatever you choose, a good tip I received a while back for anyone (even people leaving in areas that are not near water) is to keep as much as you can in waterproof containers and bags. This is particularly good advice for items that you would store in the basement, where even a normal rain shower could cause some water to leak in. And should a flood ever hit, items in these containers should be safe (and easy to move from floor to floor, or to a car to take with you.
Still have questions on flood insurance? You’re best source of knowledge would be an insurance agent. Preferably you would be able to speak with one who offers flood insurance. As always, I am happy to listen to any questions you have and provide any guidance I can.
