Concern over the Oroville dam, the levee system in the Sacramento Valley and a very wet season has naturally generated a lot of questions about flood insurance. This quick Q&A will answer the most commonly asked questions about Flood Insurance.
Q: Does my Homeowner’s policy cover flood damage?
A: NO! This is true for Homeowner’s polices with all insurance companies.
Q: Can anyone buy Flood Insurance?
A: Anyone can buy a policy. Homeowners in high-risk flood areas are required to buy a policy by their lender. In those cases the coverage is placed the day you close escrow on your home and the coverage starts immediately.
Q: How much does it cost?
A: The price ranges from $450 to several thousand dollars, depending on the flood zone where the property is located. Homeowners who are NOT in an area that requires a policy will find that they can buy a Preferred Risk Policy (PRP) for about $450-$500. The PRP provides $250,000 of coverage for the house and another $100,000 of coverage for your contents.
Q: Is there a waiting period for coverage?
A: If your lender requires you to buy Flood Insurance, the coverage begins the day you close escrow on your home and continues as long as you keep the policy in force. If you are not required to buy a policy, the coverage begins 30 days after the date you purchase the policy. For example, a homeowner in Davis who is not required by their lender decides to buy a policy on January 15th. The coverage is activated on the 14th of February, 30 days later. In other words, don’t wait until the water starts rising to buy a policy.
Q: What does a Flood Insurance policy cover that my Homeowner’s policy doesn’t cover?
A: Flood Insurance is for rising water, from the ground up. Think levee or dam breaks, overflowing creeks and rivers or city pipes bursting. Flood insurance is for those events where water rises and eventually floods a property. A burst water pipe in your wall, an old sink gasket that finally gives out or the washing machine that dumps 50 gallons in your living room – those things are all covered by your Homeowners policy (after a deductible, of course).
Q: How do I get a quote for Flood Insurance and how long does it take?
A: Email us at Quote@PurvesInsurance.com. Or call us at (530) 756-5561. We will give you a quote on the same day. If you like the quote, then you can pay for it with a credit card that same day and the 30-day wait begins immediately.