Flood insurance requires separate coverage

Q:

I know homeowner’s insurance policies do not cover water damage in the basement due to flooding from a storm like Irene. The media have made sure that I know I had to have flood insurance to be protected.

But what about flooding in my basement caused by a power outage that prevented my sump pump from working? If the power had not gone out, my sump pump would have been able to take care of the water in my basement.

Instead, I ended up with 3.5 feet of water. I lost my entire Elvis Presley music collection (I forgot I had moved it down there when my grandchildren came to visit me this summer).

I also am going to need to replace my furnace and hot water heater. It would not have happened if the power hadn’t gone out. Will my homeowner’s policy cover flood damage due to a power failure?

A:

Afraid not. Although there may be exceptions – and you should check your policy and/or speak to your insurance agent – most homeowner’s insurance policies do not cover flooding due to a failed sump pump. Flood damage is excluded from most homeowner’s policies, period.

To be protected, you must buy a separate flood insurance policy. You can buy a flood insurance policy from your agent, but the carrier for most policies is the federal government’s national flood insurance program.

Flood insurance used to cost about $600 a year (expect that cost to go up in the wake of Irene). Premiums may be higher than that, depending on the flood risk in your area.

You may find consolation in the fact that even if you did have flood insurance, it likely would not have covered your Elvis collection.

Flood insurance policies typically cover damage to your foundation and mechanical equipment, such as your furnace and hot water heater.

Improvements to your basement, like finished walls and ceilings, carpeting, etc. and personal belongings stored in your basement, are not covered. The king is still dead.