Flood insurance is one of those things people tend to file away and forget about, but September is actually a great time to pull that policy out and give it a real read. Hurricane season runs through the end of November, and if a storm rolls through Brooklyn, Jersey City, or any of the low-lying neighborhoods along the waterfront, you want to know exactly what you’re covered for before the rain starts, not after.
Reading an insurance policy can feel like translating a foreign language, so we put together this practical guide to help you get through the key sections without losing your mind.
Start With the Declarations Page
The declarations page (often called the “dec page”) is the one-page summary at the front of your policy. This is your first stop. It lists your coverage limits, your deductible, the policy period, and the property address. Check that the address is correct, that the policy is active through the end of hurricane season, and that your coverage limits actually reflect what it would cost to repair or rebuild your home today. If you bought your policy several years ago and made improvements since then, your limits may be lower than you need.
Know the Difference Between Building and Contents Coverage
Flood policies typically split coverage into two separate buckets: building coverage and contents coverage. Building coverage protects the structure itself, including the foundation, walls, flooring, HVAC systems, and built-in appliances. Contents coverage protects your personal belongings, things like furniture, electronics, and clothing.
These are not automatically bundled together. A lot of homeowners in Williamsburg and Greenpoint are surprised to learn that they have building coverage but never added contents coverage, which means a flood could damage their belongings and they’d be on their own. Double-check that you have both, and review the limits on each separately.
Read the Exclusions Carefully
Every flood policy has exclusions, and this section is worth reading word for word. Standard flood policies typically do not cover damage to property outside the main structure (like a detached garage or a fence), currency or valuable papers, or losses caused by moisture or mold that could have been avoided. Basements often have limited coverage as well, so if your home in Dumbo or along the Greenpoint waterfront has below-grade space you rely on, pay close attention to what’s actually protected there.
Understand Your Waiting Period
Most flood insurance policies have a 30-day waiting period before coverage takes effect. This is one of the most important things to know heading into any active weather stretch. If a named storm is already in the forecast and you try to buy or increase your flood coverage, it likely won’t be in force in time to help you. If your policy is up for renewal or you’re thinking about adding coverage, do it now, while things are calm.
Look at Your Deductible
Your deductible is the amount you pay out of pocket before the insurance kicks in. Flood policies can have separate deductibles for building and contents, and those amounts can vary quite a bit. Make sure you know what those numbers are and that you’d be comfortable covering them if a claim came through. If the deductible feels too high, it may be worth talking to a broker about your options.
If Something Doesn’t Add Up, Ask
We’ve been helping clients throughout Brooklyn, Jersey City, and surrounding areas since 2008, and one of the most common things we hear after a flood event is “I didn’t know that wasn’t covered.” That’s exactly the conversation we want to have with you before anything happens. Whether you have questions about your existing policy, want to compare it against other options, or just want someone to walk you through what you’re actually looking at, we’re happy to help.
Give us a call or drop us an email with any questions. We’d rather spend twenty minutes reviewing your coverage with you now than see you caught off guard later in the season.