According to the Insurance Information Institute, New Jersey has the third most exposure for storm surge among coastal states, only beaten out by Florida and New York. With wind and flood risks being commonplace in this state, purchasing insurance policies to shield against financial losses isn’t a bad idea. While Hail/Wind may come with homeowner’s insurance, Flood is not a part of standard homeowners or commercial insurance policy. It is a separate coverage that must be purchased on its own; learn how flood insurance policies work below.
Flood insurance is the only type of insurance that will cover damage due to rising water, no matter the source of the water. It must be purchased well ahead of time, as coverage does not begin until 30 days after the policy has bound. It must be paid in full at inception/renewal each year and each policy covers only one building. If someone owns more than one home or commercial property and wants flood coverage, they will need a separate policy for each location. The only exception is a garage on the property, but any coverage designated toward the appurtenant building takes away from coverage for the main house.
Homeowners can purchase up to $250,000 in Building coverage and up to $100,000 in Personal Contents coverage, each coverage purchased separately. Commercial Flood policies can include either building and contents coverage up to 500,000 or Contents Only coverage up to 500,000. Building Coverage will cover the insured building and its foundation, central air conditioning equipment, plumbing and electrical systems, refrigerators, cooking stoves, window blinds and other items. Personal contents will cover clothing, furniture, microwave, portable air conditioner, curtains, food freezers, washers and dryers among other items. FEMA has an excellent quick guide to give you all the details.
A limitation to keep in mind with flood insurance for both commercial and personal policies are with regard to basements and areas below the lowest elevated floor. In those areas, not everything mentioned above is covered, specifically with personal contents. Only washers and dryers, food freezers and portable air conditioners are covered in these zones for personal policies. Go to this site for answers to frequently asked questions about flood insurance.
If being financially protected in the event of a hurricane is appealing to you, go to this website for a no obligation flood insurance quote, and contact your Beckerman representative for more information with any questions.