Given the number and severity of natural disasters world-wide this year, it is no wonder that owners of Chester County real estate are becoming increasingly concerned about their insurance coverage for damages caused by these disasters, especially floods. 

Since your basic homeowner’s insurance policy will not cover damage due to rising water,. you would be well advised to research flood insurance policies for your Chester County real estate.  Think you’re safe because you live in a moderate-to-low-risk flood area?  Think again.  About 25% of all flood insurance claims come from areas with just such a designation!

The National Flood Insurance Program (NFIP) is a federal program that offers flood insurance to homeowners. Visit FEMA and Floodsmart to determine your community’s flood risk.  There are three types of policies available to owners of Chester County real estate: the standard dwelling; general property (for businesses and apartments); and residential condominium building association, and each can be purchased through most leading insurance companies at a relatively low annual fee. Average residential premiums cost about $570 a year, but a low-risk policy can be had for as little as $129.

As with other types of insurance, it’s important to know exactly what your policy covers, information about deductibles, rates, payment, and claim procedures.  One area not covered is the basement, so finished walls, floors, and personal belongings found there are not claimable.  .  Rates are set and depend on factors such as your home’s age, type of construction, and location.  Like other policies, having a higher deductible lowers the amount of the premium but will reduce your claim payment. Be advised that unless flood insurance is required by your lender, there will typically be a 30-day waiting period.

Insurers urge homeowners to inventory all of their belongings, estimate their value, and keep a copy of the list in a waterproofed spot or even in a location away from the residence.  Some property owners rely on videotapes to catalog their possessions.  Click here for free and easy-to-use inventory checklists and planners.

Lest you are thinking of foregoing flood insurance to save money, consider this:  just a few inches of water from a flood can cause tens of thousands in damage.  During the past decade the average flood claim has amounted to over $33, 000!  Best not to be penny wise but pound foolish…