Water and Sump Pump Backup is an endorsement to the Homeowners Policy that is often forgot about by first time home buyers. A homeowners insurance policy in its standard form will not cover water that is “backed up” through a drain, toilet, etc. If you own a Sump Pump and it fails or is over-loaded, you also not covered for damage or clean up of water.
Is flood covered under homeowners insurance?
Flood loss is absolutely NOT covered on your homeowners insurance. Flood is covered by a separate individual policy which can be written by standard insurance carriers but is run by the National Flood Insurance Program.
How does my flood zone effect flood insurance premium?
There are four different types of flood zones mandated by the national flood insurance program and they are A, B, C, X. “A” rated flood zones are consider high risk and by far carry the most expensive premiums. Flood zones B, C, and X however are considered low to moderate risk and the premiums are much lower relative to zone “A”.
Do I need flood insurance?
You do need flood insurance if you own property. It is your choice as to whether purchasing flood insurance makes financial sense or if you believe in the product. But the truth of the matter is a Flood can happen anywhere, not just in traditional flood zones, as was the case with the Northeast US and Hurricane Irene this Fall.
