Summer brings sunshine, warmth, and the perfect opportunity to review your flood insurance policy. While flood events might not be the first thing on your mind during the sunny season, being proactive and ensuring your coverage is up-to-date can save you from unexpected financial turmoil. Here are seven tips to help you navigate your flood insurance policy review:
Update Your Policy’s Effective Date: Start by checking your policy’s effective date. Ensure it’s current and aligned with your needs. If you’ve made changes to your property or circumstances since your last review, it’s essential to have the right start date for your policy.
Assess Your Policy Limits: Life circumstances change, and so can your property’s value. Take a moment to review your policy limits. Are they adequate to cover potential losses? Consider any changes in property value, improvements, or possessions that might require adjusting your policy limits.
Understand Your Deductibles: Familiarize yourself with your policy’s deductibles. Different deductibles might apply based on factors like the type of flood (e.g., river overflow or heavy rain), the structure you’re insuring, and more. Understanding these details can prevent surprises when it’s time to file a claim.
Review Policy Exclusions: Every insurance policy has exclusions, and flood insurance is no exception. Understand what your policy doesn’t cover. Common exclusions include damage from sewer backups, land subsidence, and more. This knowledge helps you prepare and consider additional coverage if needed.
Check for Rezoning: Over time, local flood zones can change due to factors like new developments or updated floodplain maps. Verify if your property’s flood zone designation has changed. Rezoning can affect your risk level and, consequently, your insurance rates.
Evaluate Property’s Flood Risk: Has anything changed in your area that might impact your property’s flood risk? New construction, natural changes in the landscape, or weather patterns can all influence your flood exposure. Stay informed about local developments that could affect your insurance needs.
Consult Your Insurance Expert: If you’re unsure about any aspect of your flood insurance policy, don’t hesitate to reach out to your insurance agent or company. They’re there to help clarify policy details, answer questions, and provide guidance tailored to your situation.
Summer’s relaxed vibe is the perfect backdrop for a comprehensive review of your flood insurance policy. By following these seven tips, you can ensure that you’re adequately protected against the unexpected. A little effort now can go a long way in providing peace of mind throughout the year.
