Bloomingdale NewsletterMarch 2013
April Showers Bring May Flowers…
and, Unfortunately, Sometimes Flooding
As a resident of Bloomingdale since 2004, I have seen and experienced theterrible flooding that has affected the neighborhood.
While I don’t currently have
a floodinsurance policy, I believe Bloomingdale residents (especially those with finished basements and owners/renters living in basement-level units) might be interested inlearning more about this type of insurance.The National Flood Insurance Program (NFIP) is a federal program administered by the Federal Emergency Management Agency (FEMA). The NFIP partners with private insurance companies such as State Farm, Hartford, Progressive, and Chubb tooffer flood insurance to property owners and renters. Rates for flood insurance are set anddo not differ from company to company or agent to agent. However, rates will vary based
on the type of construction and the risk level determined by FEMA’s flood zone maps.
So what constitutes a flood? For insurance purposes, a flood is defined as water coming up from the ground or moving sideways. This includes mud that inundates a
house. Sewage is a different case in that it’s typically covered by a
homeowners policy, but there are some cases when it can be covered by flood insurance.An important feature of flood insurance to take note of is that
there’s a 30
-daywaiting period from the date of purchase before your policy goes into effect.
buy a policy a week before a major storm and expect to be covered!What does flood insurance cost? I entered my home address into thewww.floodsmart.gov policy quote tool and found that my house is rated as moderate-to-low risk for a flood occurrence. I was also given a range of annual premium costs:
Contents Only: $55 - $743
Building Only: $381 - $1,095
Building and Contents: $129 - $1,798Should you buy flood insurance? My answer to that question is the same one Igive to nearly everyone that inquires about insurance: It depends on your personalsituation. I would certainly recommend looking into it if you live in an area that is proneto flooding (like Bloomingdale!). I would encourage it even more if you happen to live ina basement-level unit. Note: I do not sell insurance of any type, nor do I receivecompensation from any insurance companies.Please contact me if you have questions, comments, or suggestions for upcomingarticles.Best regards,Chuck Donalies, CFP®
CERTIFIED FINANCIAL PLANNER