The majority of homes damaged in major storms like Harvey, Sandy, and Katrina were in so-called “safe” zones. The federal flood maps, many of which are outdated by decades, don’t accurately reflect today’s flood risks. Climate change is throwing curveballs, making floods more frequent and severe in areas that historically stayed dry.
This little office flood reminded me of the importance of understanding and trusting your insurance. Whether it’s home, auto, pet, life, boat, or flood insurance, not having coverage is a risky gamble. Flood damage, in particular, can be catastrophic, often costing upwards of $120,000. Unless you have that kind of cash lying around, why not invest in flood insurance?
As I stood there, knee-deep in water, I couldn’t help but laugh at the irony. The Flood Nerd, advocate of all things flood insurance, caught in a water-related mishap without flood insurance for the office. It was a stark reminder that even the experts aren’t immune to the unexpected. But it also reinforced a crucial point—being prepared for the unexpected is paramount.
Reflecting on the situation, I realized this was a perfect opportunity to educate others about the nuances of insurance. It’s not just about having a policy; it’s about having the right policy for the right risks. For instance, in this case, a flood insurance policy wouldn’t have helped me. Instead, understanding the coverage provided by my BOP and the contractor’s insurance was key.
Many people misunderstand flood insurance, thinking it covers all water-related damage. However, standard policies don’t cover floods caused by external sources, like heavy rains or overflowing rivers. These require specific flood insurance. On the other hand, water damage from internal sources, like burst pipes or, in my case, a contractor’s mistake, falls under different types of coverage.
It’s also essential to consider the deductible. In my situation, the damage was relatively minor, and filing a claim might not be worth it given the deductible. This brings up an important point about weighing the costs and benefits before making a claim. Filing a claim for every minor incident can lead to higher premiums and potential policy cancellations.
