Flood Insurance

Flooded Neighborhood Street
Did you know that your home has a greater chance of being damaged by a flood than a fire? It's true, according to FloodSmart.gov .

Unfortunately, damage caused by flooding or broken water and sewer lines is not covered by your homeowners insurance standard policies; only flood insurance will cover the losses. One third of the claims paid by the National Flood Insurance Program last year were for policies in low-risk areas.

American Banker's Flood (formerly Travelers Flood) Insurance offers Policyholders flood coverage options. American Banker's Flood is one of the top flood carriers in the country and has consistently received an excellent rating for financial strength from A.M. Best credit rating organization.  Ask about the new lower cost Preferred Flood policies.

ELI - Eubanks Lawson Insurance, an independent insurance agency representing American Banker's Flood, can help you secure flood insurance to protect your home or business through the Federal Emergency Management Agency's (FEMA) National Flood Insurance Program .

It's a good idea to start the process as soon as you can because most flood insurance policies have a 30-day waiting period before they take effect (except at loan closings).

Premium costs for residential properties vary depending on coverage, which is available for your building, contents or both. ELI can help determine the flood risk level for your home and property and advise you on the appropriate level of insurance protection.

  • Flood insurance protects against losses to buildings and their contents.  A standard policy pays for damage to the property up to the replacement cost or cash value, or the policy limit, whichever is less.  A flood insurance policy goes into effect 30 days after it is purchased.  You can check to see if your home is in a susceptible area by visiting FloodSmart.gov  You can check the approximate cost of damage from flooding by using the interactive tool on the same web page. 

What's Covered?

All types of homes including condos are eligible for flood insurance. You can even purchase flood insurance to protect your contents if you rent your home.

But while most homeowners insurance is set up to get your home and belongings back to their pre-loss states, flood insurance is designed to simply get you back on your feet — it's not as comprehensive as most homeowners policies since it only covers flood damage, but conversely, homeowner or renter's insurance does not cover flood damage.

Flood insurance doesn't cover basement improvements like walls, floors or ceilings and personal belongings that are kept in the basement. It does usually cover washers and dryers, food freezers and the food inside. Water tanks, oil tanks, furnaces, stairways, unpainted drywall and sheet rock walls and ceilings are generally covered as well.

Major Disasters

In extreme cases, federal disaster aid may be available. But before most forms of federal disaster assistance are offered, the area must be declared a major disaster by the President. That declaration doesn't happen often, and disaster assistance is typically a loan which must be repaid.  According to the Insurance Information Institute , it occurs in less than 10 percent of all disasters.

With flood insurance in place, a major disaster does not have to be declared for a claim to be paid. However, certain criteria must still be met before the claim is paid and even with flood insurance, the entire loss may not be covered.

Since it may take some time before a flood insurance payment arrives, it's a good idea to have some emergency funds available to see you through.

If you would like a comprehensive review of our flood insurance program, please contact us. We will give you a quote so you can compare the affordable cost of flood insurance to the cost of repairs to your home.