Real Estate Reflections: Survive the flood: Tips and tactics for flooding and insurance

Are you prepared for the next big storm? In recent years, Westchester County has experienced record amounts of rainfall. Flooding is the most common natural disaster in the county, and it can cause devastating damage to your home and your belongings. But not all types of water damage are treated equally, and it is important to know the difference between flood damage and water damage so you can secure appropriate insurance coverage for both.

Flood damage is caused by water that comes from the ground up, such as overflowing rivers, lakes, or oceans, or from heavy rainfall that accumulates on the surface. FEMA defines a flood as an excess of water on land that is normally dry, affecting two or more acres of land or two or more properties. If you have flood damage, you need a separate flood insurance policy, either from the National Flood Insurance Program (NFIP) or a private carrier. Flood insurance is mandatory if you have a mortgage and your home is in a high-risk flood zone, but it is also recommended for low-risk areas, as 20% of flood claims come from low-risk locations. Flood insurance covers the structure of your home and some of your personal belongings. If you have a finished basement, you may even want to supplement an NFIP policy with private flood coverage for additional protection.

Water damage is caused by water that comes from above the ground, such as from a leaky roof, a burst pipe, or a broken window. Water damage is usually covered by your standard homeowners’ insurance policy, but you should double check the details of your policy and the limits of your coverage. Water damage can also result from negligence or poor maintenance, such as failing to fix a leak or clean your gutters, in which case insurance is unlikely to cover your claim.

To protect yourself from the impacts of these mega-storms, industry professionals recommend the following steps:

*Check your flood risk by using the FEMA Flood Map Service Center, which shows the current flood zone for your property.

*Get an elevation certificate from a surveyor, which shows the height of your home relative to the base flood elevation. This will be useful when you sell but may also help you lower your flood insurance premium or qualify for a map change, where relevant.

*Shop around for the best flood insurance and homeowners’ insurance rates and coverage. You can compare quotes from different carriers and agents and ask about discounts and deductibles. You should also review your policies annually and update them as needed.

*Prepare your home for a flood by elevating your furnace, electrical outlets, and heating systems, installing flood vents or barriers, and keeping your gutters and drains clear.

*Create a home inventory of your belongings and store important documents in a safe place and consider a waterproof/fireproof container.

If you are buying or selling a home in a flood zone, you will need to disclose any history of flood damage, check if the existing flood insurance can be transferred, confirm whether there is an existing elevation certificate, and consult with an insurance agent as to the cost of new premiums.

Flooding is a serious threat to our communities, but you can take action to reduce your personal risk and protect your assets. By knowing the difference between flood damage and water damage, and getting the right insurance for both, you will be covered for the next big storm.

Randie P. Paterno, Esq. is a real estate attorney with offices in Rye. Randie is licensed in New York, Connecticut, and New Jersey and lives in Rye Brook.