Need to know: Do I really need flood insurance?

No matter where you got your homeowners policy, it probably doesn’t cover damage caused by flooding from hurricanes, tropical storms, river overflow, or other weather events. For that coverage, call Integrity to help you determine your flood risk and acquire a flood insurance policy to protect your home.
Do I need extra coverage for detached structures on my property?
needtoknow3A detached garage allows up to 10% Building Property coverage; other detached buildings require separate Building Property and Contents policies. Make sure of what’s on your property and specifically ask your agents if all are protected.
Is my home covered for its true replacement value? Will I get enough money to rebuild my home if it is destroyed?
If your home is insured for its market value – the dollar amount you see on the real estate market – the answer might be “no.” The market value reflects what others might pay for your house were it for sale.
The cost to actually rebuild your house is a totally different thing, reflecting things like materials and labor, and may be much higher than the market value. This is called replacement value. Make sure you understand and are comfortable with your policy’s coverage limit.
Also, think about your contents – your personal belongings – furniture, electronics, appliances, etc. – and make sure your coverage reflects the cost to replace them. Again, if your home were destroyed, you’d want to go out and buy new items with the money you get from your insurance claim. Make sure it’s enough.
Personal valuables, such as, jewelry, may require policy endorsements to be fully covered.

What is “actual cash value” (ACV)?
Policies that provide reduced coverage levels when a structure reaches a certain age are known as “actual cash value” policies. They provide payments to repair damage based on a depreciated value. Insurance companies call this “actual cash value.” Actual Cash Value (ACV) is the replacement cost value at the time of the loss, less the value of its physical depreciation. Building items such as carpeting are always adjusted on an Actual Cash Value basis.
Contents coverage is always paid based on Actual Cash Value.

What is “replacement cost value” (RCV)?
Policies that provide payment for what it actually cost to rebuild your house including materials and labor are called “replacement cost value.” Replacement Cost Value (RCV) is the amount it would cost at the time of loss to replace property using the same materials and construction.
Standard flood policies offer Replacement Cost Value for building coverage only under two forms – The Dwelling Form and the Residential Condominium Building Association Policy (RCBAP) Form. To be eligible for Replacement Cost Value under the Dwelling Form, certain conditions must be met. First, the building must be your primary residence, meaning you or your spouse live there at least 80 percent of the year. Second, it must be insured for at least 80 percent of its full Replacement Cost Value or the maximum amount of insurance available under the NFIP. The RCBAP Form always provides building coverage at replacement cost value; however, the form includes a coinsurance clause. This coinsurance clause requires that the building must be insured for at least 80 percent of its full replacement cost or a coinsurance penalty will be applied at the time of loss.

Is my automobile protected for natural disasters?
If you carry Comprehensive on your automobile policy, your vehicle is protected. There is no separate flood policy for automobiles.

Was my insurance coverage adequate for what Mother Nature threw our way during the Great Flood of 2016?
Virtually every part of the country has to deal with some form of severe weather. These weather events cause wide-ranging property loss. To our citizens, that means hurricanes, tornadoes, tropical storms, typhoons, super storms, severe wind, flooding wildfires, earthquakes, microbursts, and hail.

With these weather events in mind and with the recovery ongoing from our own recent disaster events (Tornadoes in February and Floods in March and August 2016), many are questioning their coverages. We have questions for ourselves, for our agents and our insurance companies.
a.) Flood policies are regulated
by the National Flood Insurance Program (NFIP).
b.) NFIP creates standardized policies
based on flood zones and Base Flood Elevations (BFE).
c.) Flood insurance is sold in two parts –
one for structures and one for contents of a structure.
d.) A detached garage allows up
to 10% Building Property coverage; other detached buildings
require separate Building Property and Contents policies.
e.) All new flood policies have a mandated
30-day wait period before becoming effective for coverage.
f.) Preferred Risk Rates are available for zones outside the 100 year floodplain.
g.) Elevation certificates are required for zones inside the 100 year floodplain.