Definition: The flooding of two properties in the area or two or more acres. Flooding can be caused by:
1) overflow of any body of water
2) the unusual and rapid accumulation or runoff of surface waters from any source, such as heavy rainfall
3) Mudflows caused by flooding.
Myth: Wind-driven rain is considered flooding.
Fact: Not true. Rain entering through wind damaged windows, doors or a hole in the wall or roof resulting in standing water is considered windstorm, which is covered by a Homeowners policy.
Myth: Finished basement contents can be covered by flood insurance.
Fact: The only contents in a basement that can be covered by flood insurance (if you purchase contents coverage) is clothes washer, clothes dryer, and food freezers and the food in them. Coverage for carpet, TVs, drywall, paneling, furniture, stereo systems, etc cannot be purchased.
Myth: You can reduce coverage anytime during the policy period.
Fact: The only time you can reduce coverage is at renewal time. One exception; if policyholder provides proof/cost estimator that the building/home is over insured, then coverage can be decreased mid-term.
Myth: You can purchase flood insurance and coverage is immediate.
Fact: There is a 30-day waiting period before coverage goes into effect, and the premium must be paid. The 30-day waiting period is waived ONLY when flood coverage is required for a Loan closing.