Flood Insurance Claim Payout

Many policyholders in the United States have difficulty applying for compensation to their insurance company, especially when it comes to flood damage. And it's not just because of the fact that the average American is often not well versed in the intricacies of what counts as flood damage and what counts as water damage. There are differences in the types of insurance, the number of insurance benefits and the details related to filling out an application for compensation. We've decided to figure out how to properly act in the event of a flood in the house, and what kind of flood insurance claim payout you can count on.

Flood Damage Cases: What Are They?

Insured events in case of a flood in the house are not so frequent. But, if you live in the states where regular floods are quite common, it is still worth knowing about them. So, what counts as an event insured against flood damage? First of all, this is the damage caused by the natural forces. That is, if your apartment in a condo has been flooded by neighbors, this is not a flood. But, if you have suffered from a flood caused by a rise in the level of a tide or river, this is already considered as an insured event.

How can you tell if your case is related to the flood?

• Such damage often occurs in more than one house. If a river overflows the banks, it will flood the entire neighborhood.
• Flooding is the ingress of water into a house, when it enters from the outside at ground level. Rains and showers can be considered as a cause of flooding only if they have fallen in a short time in large quantities and have led to a rise in the water level above the ground.
• Flooding is accompanied by mud streams.

Thus, flood damage is that one which has been caused by the forces of nature, it occurs when water enters the house from the outside and only from the ground level.

Is Flood Damage Covered by HO3 Policy?

HO3 policy, which is commonly bought by homeowners, doesn't cover flood damage. Instead of this, it provides coverage for water damage issues, e.g. pipe leaks. To get compensated for flood damage, you need to conclude another contract with your insurance company. This is a flood insurance policy.

This type of policy is provided under the National Flood Insurance Program, which has been developed especially for the states with high flood risks. If you live in a state like that, buying a flood insurance policy is a must for you.

How to Claim Flood Damage Compensation?

Find below a few step-by-step recommendations to get a flood insurance claim payout. So, if your home happens to have been flooded and you hold a flood damage insurance policy, take the following steps:

• De-energize the house to reduce the risk of electric shock before trying to get inside.
• If the destruction threatens your life, be sure to contact the rescue service to start eliminating the consequences.
• If you get into the house, start taking photos and videos of all the damage, as they will be direct evidence for the insurance company. The more thoroughly you document the damage, the higher the flood insurance claim payout will be.
• Notify your insurance company that your home has been damaged by the flood. This is necessary so that an insurance adjuster would arrive at your place as soon as possible and assess the damage.
• If possible, get a document from the rescue service confirming that the damage has happened namely because of a flood caused by natural phenomena.
• Order water mitigation services. This will allow the house to be drained as quickly as possible and brought into a habitable state.
• Call your public adjuster at the same time. This will be a rewarding experience, since the specialist will not only conduct a full audit and calculate the damage in order to apply to the insurance company, but will also give you recommendations on your next steps.
• Make an urgent application to the insurance company. The more is the time between the flood and the submission of the claim, the lower are the chances of getting a flood insurance claim payout.
• If you belong to a vulnerable category of the population, do not forget to mention this. Claims for compensation from elderly and/or disabled people or socially vulnerable residents are given high priority by insurance companies.

What Are Average Payouts for Flood Damage Claims?

The amount of flood insurance claim payouts directly depends on the policy of your insurance company and accuracy of your actions. It can be increased through the following actions:

• accurate documentation of all damage, even the smallest one,
• simultaneous submitting applications for flood insurance claim payout and water damage payments, especially if it rained during the flood and not only the basement and the ground floor have got flooded, but the roof of the house as well,
• documentation of your relocation costs during flood mitigation, as if you had to leave home and rent a hotel room, you can also apply for compensation for these temporary costs,
• hiring a public adjuster, who will help to get the maximum possible flood insurance claim payout and take over communication with the insurance company. Payment for the services of such a specialist ranges from 10% to 20% of the amount of the compensation and depends on its value.

The above actions will help you get a large flood insurance claim payout and eliminate the consequences of a flood in your home without hitting your family budget.