Do You Need Flood Insurance?

You might be surprised to learn that we often recommend flood insurance for our clients in the Clark County area, including both business and home property owners. We cite multiple reasons for this protection:

• Homes can flood even if they are not near a river or lake. Homes built near bioswales and improperly graded land cause hundreds of thousands of dollars each year to homes in Clark County, Cowlitz County, Vancouver, Woodland, and Washougal.
• The Clark County region, especially near the Columbia River, has a history of floods and flood warnings.
• The Woodland and Cowlitz County region also experiences flooding each year.
• Flooding incidents are on the rise with accelerated climate change.
• Scientists in the Pacific Northwest predict greater flooding hazards over the next decade.

You may also not be aware that a regular homeowner or business property policy does not cover flooding. You cannot wait until after a flood happens to get flood insurance to cover the damage.

If something happened to your property, how would you pay for its repair or replacement? What if you derive your income through your property, whether through a business or rental? Most folks can’t cover the cost of flood damage out of their own pockets.

Should You Get NFIP Insurance or Private Flood Insurance?

You might have heard there are two different kinds of flood insurance for customers. Insurance through the NFIP (National Flood Insurance Program) is part of a federal initiative to insure communities that are at risk of flooding and take measures to mitigate those risks wherever possible. The NFIP is part of FEMA and will provide coverage to all homes in the US. Depending on your home loan type (i.e., conventional, FHA, VA, etc.) you might be required to get flood insurance from the NFIP. NFIP building coverage limits caps at $250,000 and most homes will require more than offered by the NFIP.

Private flood insurance is available to most homeowners in the Northwest. Private flood insurance is for preferred risks and is often more competitive compared to the NFIP (FEMA backed) insurance. Typically, it’s easier to purchase and simpler to work with should you have to file a claim. Additionally, the cap on what you can insure is higher, which makes this appealing to people with more expensive properties. Private flood insurance typically offers up to $4 million for building coverage on a single policy.

What Is Covered by Flood Insurance?

Flood insurance, like conventional home and business insurance, covers a wide range of elements on any property:

• The building, along with its foundation
• Plumbing and electrical systems
• HVAC and water heaters
• Portable and built-in appliances
• Window air conditioning units
• Carpeting
• Furniture and housewares
• Clothing, electronics, and other personal items
• Business equipment and inventory

We can talk with you about actual cash value (ACV) versus replacement cost value (RCV) when it comes to reimbursement for your property, as both of these are commonly used with flood insurance policies.

Our Independent Agents Can Find the Right Flood Insurance Policy for You

Because we are independent agents at Davidson & Associates Insurance, we can take the time to give you personalized service that you won’t find with big-name insurance companies. We understand the differences between NFIP and Private flood insurance. We understand everyone’s needs are different when it comes to flood insurance, and we’ll tailor a policy just for you. Call us at 360-514-9550 or get in touch to get your quote started today.