TDCI, NAIC Share Tips on Flood Insurance, What to Do During a Flood
Flooding is the most common and expensive natural disaster in the
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The most important thing to understand about flood insurance is what it isn't. Flooding damages are not typically covered through most homeowners and renters insurance policies. Flood insurance can be purchased through an agent or insurer participating in the National Flood Insurance Program (NFIP) (https://www.naic.org/cipr_topics/topic_nfip.htm), which
If your community doesn't participate in the NFIP, contact your licensed insurance agent to ask about private flood insurance. If your agent can't write a private flood policy, he or she may refer you to another licensed agent. If you choose a private flood insurance policy, shop around and compare coverage and premiums before you decide which policy to buy (NAIC Flood Insurance Basics - PDF(https://www.naic.org/documents/cmte_c_trans_read_wg_related_flood_insurance_basics_v4.pdf)).
Please note: There are a few areas in
Why
The
* High-risk areas have at least a 1 percent chance of flooding each year. Homeowners in these areas with mortgages from federally regulated or insured lenders are required to buy flood insurance.
* Moderate- to low-risk areas have less than a 1 percent chance of flooding each year, but there is still a possibility the area could flood. Flood coverage isn't required in these areas, but it is recommended. Some mortgage lenders still require you to have flood insurance in non-high-risk areas.
* Undetermined risk areas are areas where flood-hazard analysis has yet to be conducted, but risk still exists.
It is important to note that approximately 20 percent of flood insurance claims come from outside of high-risk flood zones. Remember: Where it can rain, it can flood. According to
Contact your insurance provider to learn more about flood insurance, to learn if your community participates in the NFIP or to get a quote.
What Should I Do in the Event of a Flood?
* Have a plan (https://www.naic.org/documents/consumer_alert_disaster_preparedness.htm). Learn the evacuation routes in your community and designate a point of contact in another state in the event your family is separated. If you are staying in your home during a flood event, go to the highest level of your home. If you are outdoors, move to higher ground and take shelter, if necessary.
* Prepare your home. Move items you want to protect to a higher floor and prepare to turn off your electricity.
* Store your insurance information in a safe place. Regularly update your homeowners or renters insurance and maintain a home inventory to keep a record of your possessions. Also, keep track of records and receipts. (MyHome Scr.APP.book:
* Keep insurance agent and company contact information handy. In the event of a flood, contact your insurer as soon as possible when it's safe. Your policy may require you to notify the company within a certain time frame.
* Take pictures of any property damage. Try to prevent further damage by cleaning and drying wet items.
* File a claim (https://www.naic.org/documents/consumer_alert_wake_of_the_storm.htm). Most insurance companies have a time requirement for reporting a claim, so contact your agent or company as soon as possible. Your state insurance department (http://www.naic.org/state_web_map.htm) can help you find contact information for your company, if you cannot find it.
* Beware of fraud. Protect yourself by getting more than one bid from contractors and requesting references. Ask for proof of necessary licenses, building permits, insurance and bonding. Record the contractor's license plate and driver's license numbers and check for complaints with the
* Beware of flooded vehicle scams (https://www.tn.gov/commerce/news/2017/9/19/tennessee-motor-vehicle-commission-beware-flood-related-vehicle-scams.html). After a flood, consumers should be alert for scammers who might disguise severely water-damaged vehicles as being perfectly good. Any person selling a flood vehicle is required by law prior to the sale of the vehicle to disclose such to the purchaser. Further, once titling that vehicle, the purchaser will receive a branded vehicle title indicating the vehicle's salvage history. Remember: A vehicle's flood history may take up to 30 days or longer to post on traditional consumer reporting sites. As such, the
For more information, consumers are encouraged to watch TDCI's flood insurance video (https://youtu.be/XVMqeK7mso0) or visit tn.gov/commerce.
You can learn more about disaster preparedness at Insure U (https://www.insureuonline.org/insureu_type_home.htm#tab2), the NAIC's consumer education website.
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