You don’t have to live near a Top Ten river to worry about flooding. For example, New Jersey’s 80-mile-long Passaic River, with rapids that ran dry in August 2010, flowed over its banks into homes and streets in March 2011. Many other homes around the country are vulnerable to flooding after heavy rains or snow melt. This past winter generated so much snowfall that the National Oceanic and Atmospheric Administration (NOAA) warns that almost half of the U.S. is at risk for spring flooding
What’s more, flooding damage is not covered by a typical homeowner’s or renter’s insurance policy. If you live in an area where flooding is a danger, you probably can buy specialized coverage under the National Flood Insurance Program (NFIP).
Check with agent who sold your homeowner’s or renter’s insurance policy and keep in mind that there is a 30-day waiting period after you buy flood insurance before the policy takes effect.
Your homeowner’s or renter’s policy probably won’t cover mold damage, either. Flood waters can cause mold, and the damage may appear long after the flooding has receded. Check your policy to see if it covers mold damage caused by flooding; if not, ask your agent if separate coverage is available, and at what cost.
