Archive | October, 2010

Rains hit hard in Anaheim, causing flooding in the streets. Photo by Bruce Chambers, OC Register.

Unseasonal and heavy rains in Southern California over the past few days have left many homeowners and renters with significant water damage. Sadly, many of these people have found out that their homeowners or renters insurance does not cover for a flood, nor do they cover for sewer, drain or sump pump backups without adding a sublimit.

Whether you were one of the fortunate, covered and insured or one that experienced a “denied” claim for flood or backup, you should take the time to understand how these two important insurance coverages could protect your home and family before the rains are really supposed to hit California’s southland.

According to the website FloodSmart.gov, your home has a greater chance of being flooded than torched with fire. Yet it can be an ugly surprise to find out that your homeowner or renter’s insurance does not cover home or property damage from a flood—the only way you can be protected is to get a flood insurance policy from an insurance agent.

But you thought that flood insurance was only available to people with mortgages who live in high-risk flood areas? Think again. Actually, anyone can buy flood insurance, even if you only rent. Those in low-risk areas are eligible for flood coverage, according to FloodSmart.gov, and it can start as low as $119* annually for coverage for the building and contents. The average flood claim costs $21,000 (and that’s just one inch of water in 2,000 sq. ft.!), so you do the math. $119 a year to cover tens of thousands in repair, mold remediation and property replacement? The benefits of flood insurance are pretty clear.

Don’t think that flood coverage is a replacement for homeowners insurance, it’s more of an add-on designed to get a homeowner or renter back on their feet after tragedy strikes. Although California is short on basements, be warned that flood insurance is very limited on paying out for damages to basements, walkout basements and crawl spaces, or the property that is kept in them.

Another caveat: most flood insurance has a 30-day waiting period before it goes into effect. So don’t wait until the sky starts clouding up to call your insurance agent—call while the sky is clear and the ground is dry so that when the rain hits, you’ll be covered. Literally. For more information on flood insurance, call us here at BMR Insurance for a full explanation. For good ideas on flood prevention, visit the FEMA website.

Heavy rains, especially in an area unused to such downpours like Southern California, can cause flooding in sewers and drains. Ever looked at your toilet and realize that water can come IN through it from the sewer? No? Well it certainly can, and you can kiss your expensive carpet or hardwood flooring goodbye.

But you’re covered, right? Almost 70% of homeowners think that damage from a sewer, drain or sump-pump back up would be covered. And they’re wrong. Most homeowner and renters insurance doesn’t cover the damages for these type of events unless it’s been added to the policy as a sublimit or endorsement. Luckily for a low price, usually around $50 per year, you can add this coverage to your policy giving you between $2,500 and $50,000 worth of protection*.

When it comes to a potential of thousands of dollars in damages, it’s not smart to assume. Call BMR Insurance now at (714) 838-1911 to find out if you are covered. It’s a big enough surprise to find your living room furniture swimming in six inches of sewage; don’t let the fact that you’re not covered be the next surprise!

* These are estimates. To get a personalized quote with accurate figures for your property, please call BMR Insurance or check with your insurance agent.