Two Types of Flooding Insurance are Available; Do You Know the Difference?

As April approaches, images of storms and flooding from last year may be coming to mind. However, if the National Oceanic and Atmospheric Administration’s predictions hold true, 2012 will be the first time in four years that no area of the country “faces a high risk of major to record spring flooding, largely due to the limited winter snowfall,” according to the agency’s spring outlook, which forecasts flooding from April to June.

In , which is notorious for flooding problems, residents may be wary of this prediction. While experts have not forecasted record levels, some flooding will still occur.

“People often have flood damage that are not in a high-risk flood zone,” said Ken Smith, an Allstate agent in Des Plaines.

According to data provided by Allstate, 25 percent of floods occur in low to moderate risk areas.

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Smith, who has sold insurance since 1999 and was Allstate’s top salesperson in North America in 2003, said one thing that tends to go unaddressed by homeowners is having a good understanding of the differences between water sewer backup coverage and flooding insurance.

Smith said, while both types of coverage are purchased from an agent in addition to homeowners’ insurance, flooding insurance is actually provided through the Federal Emergency Management Agency, or FEMA, and they cover different things.

Water sewer backup coverage pays for damage done by water that comes up either through the sump-pump hole or through a sewer main, Smith said.

Flood insurance covers damage done by surface water that comes in through a wall, threshold or window, Smith said.

Approximately 38 percent of people who live in high-risk flood zones have flood insurance, according to data provided by Allstate.

Smith said everyone should schedule a policy review with an insurance agent to assess risk.

“As a homeowner you should look into the options around flood insurance to avoid unrecoverable damage to property and belongings,” Smith said.

For more information on flood insurance, visit Allstate’s website or contact your homeowner’s insurance agent. You can also visit the National Flood Insurance Program’s website for information on flood insurance.

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