(Washington, DC) In light of the torrential rainfall of the past several days, the District of Columbia Department of Insurance, Securities and Banking has decided to resend its consumer tips for District residents who are now seriously considering flood insurance.
“No one could have anticipated that a few days of rain could have done this much water damage,” said Commissioner Thomas E. Hampton. “With all the flooding in basements, roof leakages, and cars and homes becoming waterlogged, many people are now left holding the bag as they discover that flood insurance is not part of their regular home insurance policy and that they may have to pay the full cost of replacing their valuables.”
To prepare District consumers financially for any disaster, including this one, Hampton is again reminding residents to know the extent of their insurance coverage.
“As we are seeing again, inches of water will cause thousands of dollars of damage, and while you are pulling out your home insurance policy and reviewing it, knowing the coverage you have, and what else you might need, will give you peace of mind,” Hampton said.
It is worthwhile to note that the standard homeowners’ insurance policy does not cover flood damage. This is a special policy federally backed by the National Flood Insurance Program (NFIP). Consumers may buy flood insurance that covers up to $250,000 for flood damage to their homes. A standard flood policy will cover structural damage, including damage to the furnace, water heater, air conditioner, floor surfaces (carpeting and tile) and debris clean up. For an additional premium, consumers may also buy flood coverage for up to $100,000 of flood damage to the contents of the home. According to the Federal Emergency Management Agency, the average flood insurance policy costs a little more than $400 a year for about $100,000 of coverage. The actual cost depends on the residential area and the amount of coverage.
To save on homeowners’ and flood insurance, Hampton is reissuing the following tips from the National Association of Insurance Commissioners (NAIC), a voluntary organization of chief insurance regulatory officials: