Shelby County's own University of Montevallo (UM) is celebrating its 125th anniversary and this is really something worth noting. However, during this time a concern that doesn't look like affecting flood insurance surfaced; local restaurants and the general population of Shelby County are experiencing supply chain issues.

The Impacts of Supply Chain On Flood Claims in Shelby County, Alabama

Today, we want to talk about what this could mean for flood insurance, its coverages, and what to expect as we celebrate the 125th anniversary of UM.

Supply Chain Issues

Local restaurants in the southern parts of Birmingham are having a rough start to the year as supply chain issues resurface. This is causing a lot of problems not just for food supplies, but even necessary utensils and such. From containers to equipment, business owners are having trouble handling the potential economic impact of the issues with supplies.

This issue is just a few weeks after President Joe Biden implemented a presidential declaration to help homeowners across Jefferson County, Mobile County, and Shelby County when it comes to recovering from the October 2021 flooding.

The Impacts of Supply Chain On Flood Claims in Shelby County, Alabama

A local business owner, Naseem Ajlouny, shared with Shelby County Reporter how he's struggling with the supply chain issues. He quoted to have "spent around 30% of work now trying to source product". Moreover, there are also concerns with food supplies through crops such as the availability of corn on the cob and other protein products.

This is creating an increase in costs for menus across the county just to make ends meet. Worst case scenario, the item just has to be removed from the menu.

So what does this mean for flood insurance?

Supply Chain & Coverages

Now, when it comes to the concern of the supply chain, it's important to keep in mind that this doesn't just impact how businesses run. This also means that there may be unwanted impacts to flood insurance.

Let's all remind ourselves that Alabama, especially Shelby County, can be very prone to floods. There are a lot of flood hazards in the area which only contributes to the high-risk flood zones that the county is in when it comes to flood insurance rate maps (FIRM). So, this isn't really just a concern for business owners, but it can also impact homeowners.

You see, when it comes to flood insurance coverages, those replacement costs for recovering and rebuilding the building still need to come from sourcing out materials — the same goes for content coverages or the personal items included with the insured building.

If business owners are having trouble getting materials outside of flood insurance coverages and to keep their businesses afloat, what more when water starts overflowing from the floodplain?

This type of issue can cause a limited amount of coverage when it comes to additional living expenses from your flood insurance claim. This means that you won't really get an increase in premiums or payment, but you can expect to face higher costs when it comes to repairing the building.

The Impacts of Supply Chain On Flood Claims in Shelby County, Alabama

When flood insurance covers the repairs or recovery of an insured building, the market can still have an impact on the costs of materials like wood, bricks, metal, and things like that. Since the county is experiencing some challenges with importing these things, it's safe to expect that there will be higher costs on the materials.

This could also mean that if you have that $250,000 standard coverage for your $200,000 home, it will easily be maxed out when you file a flood claim when the reparation begins.

Even if we say that you will get 100% coverage on the repair of your insured building, there will be no room for flood mitigation measures since the building coverage or replacement cost is already maxed out.

The Impacts of Supply Chain On Flood Claims in Shelby County, Alabama

This can be very concerning especially since we're moving out of the winter season very soon and that also means that Alabama will face runoff from all directions. We've seen this happen before and it's not impossible to happen again. Despite the clearer skies in North Alabama, it's important to mention that Cullman County in the north-central areas of the state, faced 2 to 3 inches of rain in September before the October flooding.

Are you prepared to face possible flooding in the next few weeks?

If you have any questions on supply chains and flood insurance, how to review your insurance coverages, where to get flood insurance or anything at all, you can click our Flood Learning Center where we try to answer all your flood insurance questions.

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You can also click below to call us and we can discuss your flood insurance needs.

The Flood Insurance Guru | 2054514294

Remember, we have an educational background in flood mitigation which lets us help you understand your flood risks, flood insurance, and mitigating the value of your property long-term. 

The Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP) are stepping on the gas to upgrade their services when it comes to flood insurance.

FEMA Cancellation Reasons: Category #3 - Duplicate Coverage

In today's blog, we want to address one of the most important changes coming with the Risk Rating 2.0 when it comes to the cancellation federal side of flood insurance.

What happens when your coverage is duplicated between two policies? How will it be canceled now that's NFIP switched to Risk Rating 2.0?

Category #3 - Duplicate Coverage

When it comes to purchasing flood insurance, it's not impossible that a homeowner will get duplicate policies. After all, having an option is better than none at all. However, this type of situation creates a possible chance that the flood policy of the insured will be duplicated.

This is why FEMA and the NFIP allowed policyholders to have a flood policy canceled if there's an unintentional or, basically, accidental duplication of your flood insurance.

In the previous NFIP Legacy Program, this is known as either Cancellation Reason Code #04, #10, or #26. Let's talk about how these three are different from one another.

FEMA Cancellation Reasons: Category #3 - Duplicate Coverage

Reason Code #04 indicates that a policy may be canceled if there's a duplicate in coverage. This means that you might be registered under two different flood insurance policies for the same name, address, coverage amount for the building and its contents.

When it comes to this Reason Code, one of your duplicated policies will be canceled in order to either (1) establish a common expiration date, (2) the dwelling/building policy coverage due to RCBAP (more on this later), (3) there's a force-placed policy from the mortgage when the insured/borrower already bought a flood policy, (4) a policy of earlier date already expired, or (5) a Group Flood Insurance Policy (GFIP) needs to be canceled to move into a standard-rate policy.

Reason Code #10 mostly concerns renters. This Reason Code's cancellation indicates that the policy needs to be canceled due to either the policy with only building coverage is being replaced by the Residential Condominium Building Association Policy (RCBAP), or the unit owner or RCBAP building limits are more than what FEMA coverages offer.

Reason Code#26 is for those who bought a policy from private flood insurance carriers and didn't want to push through with their NFIP policy's purchase or renewal.

The NFIP policy will be canceled depending on your discretion, so they won't really cancel it for you without your confirmation. This is very helpful to keep in mind especially for FEMA policyholders who are switching to private carriers for their flood insurance needs.

FEMA Cancellation Reasons: Category #3 - Duplicate Coverage

What's Changing?

Generally, the details and conditions of the three aforementioned Reason Codes still apply to the new Risk Rating 2.0 program. However, in order to avoid confusion, FEMA and the NFIP decided to combine Reason Codes #04, #10, and #26 into one Category.

FEMA Cancellation Category #3 is basically what you'll need whenever you need to cancel a federal flood insurance policy because it's a duplicate. This change can really be helpful for homeowners and business owners alike who won't have to keep on reviewing the FEMA handbook to know what's the best Reason Code for their situation.

This is also a great tool for those looking to move into the private insurance carriers to get a more fitting policy for their coverage needs.

These changes can be confusing, so if you need help understanding how flood insurance work and how your FEMA policy can be canceled, where to buy flood insurance, understanding your risk of flooding, or anything related to floods, click below to access our Flood Learning Center.

Flood Insurance Guru | Service | Knowledge Base

You can also click my picture below to call us for your flood insurance concerns.

a person wearing a hat

Remember, we have an educational background in flood mitigation which lets us help you understand your flood insurance, how it can be managed, flood risks, and mitigating your property to preserve its value long-term.

We moved out of the legacy program of the Federal Emergency Management Agency (FEMA) and are now officially going to adopt the Risk Rating 2.0 program for the federal flood insurance. In our previous blog, we were able to establish what's changing with these cancellation reasons with the Risk Rating 2.0 program.

FEMA Cancellation Reasons: Category #2 - Common Expiration Date

Other than the changes coming to the overall rating structure of flood policies with the National Flood Insurance Program (NFIP), we're also going to see some changes to cancellation reasons.

Today, we want to focus on Category #2 of FEMA Cancellation Reasons: Establishing a Common Expiration Date. Let's talk about it.

Category #2: Expiration Dates and More

When it comes to flood policies, it's important that you have the correct effectivity and expiration dates. This is a matter of life and death when it comes to your property's status.

When we say effectivity date, we're simply talking about when you're policy is going to start covering flood damages that may occur on the insured building or property. On the other hand, the expiration date is when the flood policy will no longer take effect when it comes to coverages to flood loss.

The thing about these dates is that it's pretty common to get it mixed up and two policies will be written for the same property with different effectivity and expiration dates. This isn't allowed even in private flood insurance.

FEMA Cancellation Reasons: Category #2 - Common Expiration Date

In order to resolve this issue, FEMA and NFIP handles the situation by canceling the other policy. The policy that will be canceled won't be based on when it was written, but whichever has the higher coverage.

Simply put, you will take up the FEMA flood policy that has higher flood insurance coverage for your insured building no matter what. This also means that the approved policy's expiration date will be followed and the rejected one will be canceled.

If you ever get into the situation where your policy is written for two different expiration dates, one obviously needs to get canceled. In the NFIP Legacy Program or NFIP version 1.0, the cancellation will be written with Reason Code #03.

What's Changing?

When it comes to the updated cancellation reasons for Risk Rating 2.0, Reason Code #03 will be changed into what's called Category #2. Generally, the numbering was moved up because the previous Reason Code #2 already gets covered in Category #1 alongside Reason Codes #01 and #07.

In order to have a policy canceled due to Category #02, the policy must meet two conditions:

1. The insurer must remain the same for the new flood policy with the same or higher amounts of coverage. The agent must submit a new application and premium.

This simply means that your insurance agent must submit a new application finalizing your flood policy application to FEMA and NFIP in order to match the correct expiration date and the higher coverage limits for your property.

This condition also means that you can no longer change to another insurer. Generally, condition #1 asks the insured and agent to simply correct any mistake within the flood policy, especially the expiration date.

2.  The other insurance coverage for which the common expiration date is established must be for building coverage on the same building insured by the current in-force flood policy.

You can cancel your policy however according to condition #2, FEMA Cancellation Category #2 will only be written to establish the same expiration date of the policy. You can't insure a property that's different from the current one you have.

FEMA Cancellation Reasons: Category #2 - Common Expiration Date

Having the correct dates and coverage on your policy is really important and getting it wrong will only cause you more headaches once floodwater starts to inundate your property. Having two different expiration dates can mean that your policy will already lapse when you need it the most and you're not going to get covered.

These changes can be confusing, so if you need help understanding how flood insurance work and how your FEMA policy can be canceled, where to buy flood insurance, understanding your risk of flooding, or anything related to floods, click below to access our Flood Learning Center.

Flood Insurance Guru | Service | Knowledge Base

You can also click my picture below to call us for your flood insurance concerns.

a person wearing a hat

Remember, we have an educational background in flood mitigation which lets us help you understand your flood insurance, how it can be managed, flood risks, and mitigating your property to preserve its value long-term.

We moved out of the legacy program of the Federal Emergency Management Agency (FEMA) and are now officially going to adopt the Risk Rating 2.0 program for the federal flood insurance.

FEMA Cancellation Reasons: Category #1 - No Insurable Interest

Other than the changes coming to the overall rating structure of flood policies with the National Flood Insurance Program (NFIP), we're also going to see some changes to cancellation reasons.

Today, we want to focus on Category #1 of FEMA Cancellation Reasons: No insurable interests.

Category #1: No Insurable Interest

First, we want to address the following conditions wherein this new category falls. In the previous version of the NFIP, "No Insurable Interest" actually falls under three separate reason codes. These reason codes are #01, #02, and #07. Let's do a quick review directly lifted from FEMA's handbook on cancellation rules.

First, let's cover the conditions wherein this cancellation reason can be considered under Reason Code #01.

The conditions mostly cover the idea that the property can't be insured either due to it failing to meet the standards of the NFIP and FEMA to be eligible for flood insurance coverage. These conditions are either (1) the building/property is at a total loss due to damages and it's basically unsavable, (2) when the developer or builder has requested to cancel the policy mid-term due to the homeowner moving into another property, and (3) maybe even due to a failure of the property transfer or the closing of a deal on the house's purchase.

FEMA Cancellation Reasons: Category #1 - No Insurable Interest

In Reason Code #02, the conditions are either (1) the property has been transferred to another owner, (2) the contents are completely removed or moved from another place due to the previous condition, and (3) the contents were destroyed by a peril like floods, earthquake, or a fire.

FEMA Cancellation Reasons: Category #1 - No Insurable Interest

Lastly for Reason Code #07, will consider either (1) an insurer issues a policy and the anticipated transfer of the property does not take place, or (2) the insured does not acquire an insurable interest in the property.

Based on these two items, this is mostly regarding homeowners who applied for flood insurance with FEMA and the NFIP before they purchase a property. Think of it this way, you bought a flood policy first to make sure that the property gets flood insurance coverage, but you haven't really bought the house or the transfer hasn't been completed yet.

FEMA Cancellation Reasons: Category #1 - No Insurable Interest

The cancellation reason will take place once this property wasn't transferred to the buyer, therefore, nullifying the proposed flood insurance policy on that property.

What's Changing?

In the new Risk Rating 2.0 update, this "No Insurable Interest" reason actually falls on Reason Codes #01, #02, and #07 when it comes to the legacy program of the federal flood insurance. However, the new update moves these three reasons into one Category that caters to any and all conditions where the property simply isn't there anymore to be insured by a flood policy.

In Risk Rating 2.0, this becomes Category #1 and is actually easier since if you can notice, there were multiple repetitions within the legacy program's Reason Code #01, #02, and #07. This avoids any confusion since we're talking about conditions which is a great move on FEMA and NFIP's part.

So if your house closing didn't push through, the property was completely destroyed, and/or builder requests for cancellation, this already gets covered in FEMA Cancellation Rule: Category #1. No need to go back into the three codes because this category already covers your concern and it's easier for both homeowners and insurance agents to help your policy get nullified and eventually canceled altogether.

These changes can be confusing, so if you need help understanding how flood insurance work and how your FEMA policy can be canceled, where to buy flood insurance, understanding your risk of flooding, or anything related to floods, click below to access our Flood Learning Center.

Flood Insurance Guru | Service | Knowledge Base

You can also click my picture below to call us for your flood insurance concerns.

a person wearing a hat

Remember, we have an educational background in flood mitigation which lets us help you understand your flood insurance, how it can be managed, flood risks, and mitigating your property to preserve its value long-term.

Even with a couple of months of the newest Risk Rating 2.0 update with the National Flood Insurance Program (NFIP) at our very lives, a lot of homeowners still find some challenges in understanding its newest rating system.

What is First-Floor Height?

One of the biggest changes that came with the rating structure of federal flood insurance is the flood risk variables and one of the most complex ones is just below your feet. Today, we want to talk about what is first-floor height? How does this impact your flood insurance premiums? How can you mitigate this flood risk variable for your NFIP policy?

House Elevations on Risk Rating 2.0

The Risk Rating 2.0 presents a bunch of new things to analyze the flood risk on a building. Since we're talking about flood then one of the biggest concerns is the base flood elevations and how it interacts with your insured building.

This new rating system in the National Flood Insurance Program (NFIP) had to address the elevation of homes across the country. As the height of floodwater increases, it's equally important to Federal Emergency Management Agency and the NFIP that flood mitigation is being done to properties to avoid substantial and life-threatening damages. Enter the separation between distance to the ground and first-floor height. 

Let's paint a picture for example, in the video below you will see that the house behind me sits directly on the ground or what we'd call a "slab on grade" type of foundation. This is an easy example because there's basically no difference between the lowest ground level of the building at its first level of the habitable floor.

On the other hand, if you have a basement and it's habitable meaning a person can basically live, breathe, dine, and sleep in it, then you might have a different rate compared to houses like a slab on grade. This sets apart the two rating factors. When it comes to first-floor height (FFH) basement-type foundations can be a major player in increasing your flood insurance rates with FEMA and the NFIP.

The new National Flood Insurance Program (NFIP) rating tool indicates that your flood insurance policy with Risk Rating 2.0 will rate you depending on the relative distance of the ground, in which base flood elevations are calculated, as well as where your first-floor height sits.

What is First-Floor Height?

Think of it this way, in the legacy program or the NFIP 1.0, crawlspaces have a huge impact on rates depending on whether or not it has flood vents whereas NFIP 2.0 basements, that aren't used for storage or access, can negatively impact you if a surveyor from the Federal Emergency Management Agency (FEMA) was able to detect that your basement is livable.

This way, properties like these will have their first-floor height and distance to ground in negative numbers which generally means more expensive flood insurance premiums. It's important to understand this rating factor under the FFH since this is one of the things that are the hardest to arrange or mitigate.

Risk Rating 2.0 — Shift on Premium Rates

As we said before, the NFIP and FEMA's approach on flood insurance with the new Risk Rating 2.0 program is to have a more accurate and precise representation of your flood risks in order to get your flood insurance rate.

This means that we will no longer be using flood maps and flood zones as a rating measurement, but rather a regulatory factor on flood insurance especially for properties in the special flood hazard areas (SFHA) or high-risk zones which face a significantly higher chance and more devastating impacts of flooding.

As a refresher, we wanted to include the flood risks variables that measure your flood risk score with FEMA and the NFIP. These variables that determine your rate are as follows:

  • Foundation Type (e.g. slab on grade, crawlspace, basement)
  • Distance to the ground
  • First-floor height
  • Distance to a water source (e.g. creek, river, lake)
  • Flood type (e.g. pluvial, fluvial, or coastal)
  • Flood frequency
  • Rebuilding or replacement cost
  • Flood risk mitigation measures on the property
  • Flood claim variable

What is First-Floor Height?

Despite having a new form of rating, some things never change with the federal flood insurance. One of the things that are staying the same is coverage amounts with the NFIP. This means that you're still going to have to deal with that $250,000 max on building coverage and $100,000 max for contents coverage.

Wait periods are also staying the same with the 30-day rule with the Federal Emergency Management Agency (FEMA) to get your flood insurance policy to take effect after purchase.

If you have any questions on how NFIP Risk Rating 2.0 measures your flood risk score and rate you, how first-floor height works, and/or anything about floods and insurance, click below to reach us or visit our Flood Learning Center where we try to answer your flood insurance questions.

Flood Insurance Guru | Service | Knowledge Base

Remember, we have an educational background in flood mitigation which lets us help you understand your flood risk and mitigate your property long-term.

The Flood Insurance Guru | 2054514294

When flooding happens, it's sure as daylight that flood waters will also cause substantial flood damage to any community unlucky enough to meet it. In some cases, flooding can create greenspaces because the conditions for a property to stay there without experiencing a flood are almost impossible; some property owners just don't want to risk it anymore.

How To Find Flood Loss History?

In some cases, you won't see a green space because the properties, be it a residential or commercial one, stay in that location. Today, we want to talk about how flood history and its subsequent losses can be gathered for a property that you may be looking to buy.

Flood Loss History

If you're new here and to the flood insurance industry, we'd like to welcome you in our journey of raising awareness about floods, their impact, and how you can protect yourself through education. We're just going to go off a limb here and cater to everyone by first understanding what flood loss is.

Flood loss is any goods, personal property, vehicles, buildings, or structures that were damaged during a period of a certain flooding event. This doesn't need to be as big as the floods during major hurricanes since runoff can still be enough to be categorized under a flood.

How To Find Flood Loss History?

According to the Federal Emergency Management Agency (FEMA), surface water can only be considered as a flood if it follows the "Rule of Two". This rule states that water will be considered a flood if it covers two (2) acres of normally dry land or at least two (2) properties that are inundated by water.

Flood loss history basically covers the overall data of flooding that impacted a certain community, area, or even a single property. The National Flood Insurance Program (NFIP) and FEMA had plans to release flood loss data to the public where everyone can access and review it. However, this didn't end up happening so flood loss history won't be accessible to the public even with the new Risk Rating 2.0.

Generally, flood loss is important to understand the nature of water and floods in a certain area for flood zone designation and understanding the flood risk for the properties there. However, individually this can also be very helpful in buying or selling a house.

Now, you might be asking if FEMA and NFIP aren't releasing this publicly, then how can I get it? Well, the thing is the flood loss data for a specific property is something that can be given only to the property owner. 

How To Get Flood Loss Data?

If you're a property owner who's looking to sell your house or someone who's looking to buy a new house, providing flood loss data is important especially in states like Louisiana, Mississippi, Oklahoma, and Texas where disclosure of the flood risk of the building will be shared by the seller to the buyer under the mandate of federal law itself.

Some of these states even require that you disclose whether or not the property's in a FEMA designated flood zone, especially high-risk flood areas or 100-year flood, in flood insurance rate maps (FIRM), federal aid, and flood claims made with the property as a cherry on top. This type of flood risk disclosure also applies to real estate deals or sales.

 

This way both the buyer and the seller benefit from the knowledge that the property has flooded and can act on mitigation measures to remove flood hazards and/or reduce flood damage. Put it simply, if you're buying a house, you want to know what you're getting out of that deal.

At the end of that day, buying a new home and getting flood insurance is one chore when it comes to financial security especially now that Risk Rating 2.0 mostly created an increase in premium rates across the United States.

So, how will you be able to get your flood history for your property?

Fax

First, you can fill this NFIP Loss History Report Request and fax it to the Federal Emergency Management Agency (FEMA). This form will have you fill up your name, full address for the building you're getting your flood history for with the zip code, your fax number, and contact number.

It's very crucial to note that, as aforementioned, only the property owner can collect or request this data, you must also include your signature with this document when you fax it to FEMA and the NFIP. 

How To Find Flood Loss History?

After sending the document through Fax, FEMA and the NFIP will then provide you a copy of your flood loss data for the property through the number you provided.

Phone or Email

You can also call the office of the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP) to request this flood loss information. You can dial FEMA's number (877-336-2627 or 800-638-6620) to personally request this data.

There's also an option to get this information emailed to you by requesting the flood loss data through FEMA's email. Simply send them an email through your account to request this information and they will reply back to you with the said copy of your flood loss data.

To email FEMA, simply send a request to femamapspecialist@riskmapcds.com.

Once more, it's important to note that you must be the property owner in order to request the property's data to be sent. If you are a real estate agent or a buyer, you can request the property owner to get this information for you.

Why Flood Loss Data is Important

Other than some states requiring you to fully disclose the flood data and flood loss history of your property, this is also important for you as a policyholder to know the current state of the property you're looking to sell or buy when it comes to flood insurance.

Recently, we had a customer who had no issues with a flood insurance carrier when it comes to their flood loss. Basically, the policy is already settled and it showed no flood losses when, in fact, the property had eight (8) of them! The policy's now written incorrectly and when the customer sent this to FEMA for a flood claim, the flood insurance policy was nonrenewed.

How To Find Flood Loss History?

This may sound like not much of a big deal, but it's important to note that since flood insurance is a separate policy from homeowner's insurance, this puts the customer in a really bad place.

The flood policy being nonrenewed means that they will have to look for alternative flood insurance carriers to provide the coverage and protection against floods which is going back to square one.

The Flood Insurance Guru | 2054514294

So if you have any questions on flood loss, flood insurance, and need the help of getting this data, click below to contact our team or visit our Flood Learning Center where we try to answer your most common flood questions.

Flood Insurance Guru | Service | Knowledge Base

Remember, we have an educational background in flood mitigation which lets us help you understand your flood risk from paper to water and protect the value of your property long-term.

Since the beginning of time, we were always accustomed to thinking that fire and water can only destroy one another. What if I told you that in the case of California, fires actually worsen the amount of water that we get when there's flooding.

Today, we want to discuss how these fires in California have been impacting the flooding on the west coast and communities can best prepare themselves for this type of condition.

How Do the California Fires Impact Flooding?

Fire and Floodwater in California

If you told people outside of the west coast that fires and drought can lead to worse floods, some might find it hard to believe however this is the perfect cocktail that's been ravaging the western areas of the country and most specifically California.

At the time of writing, a bomb cyclone and atmospheric rivers caused a lot of flash floods, toxic runoff, rockslides, and mudslides after a significant amount of rain was dumped in the area. We've covered this topic in our previous blog. What we want to focus on is how even in recent times, this tag team of wildfire and floods are causing a lot of trouble in California.

How Do the California Fires Impact Flooding?

If we look back in 2018, Butte County and Los Angeles were hit with 1 and a half inches of rain which is fairly common anywhere else, but this was enough to cause catastrophic flooding. How did that relatively small amount of rainfall be enough to cause floods?

Well, at the time that this happened, California's soil was badly scarred by the deadliest wildfire in history. The flood was due to the fact that the soil in the area was totally incapable of holding any of that water so it just caused all of the debris to flow into nearby areas.

Fires Becoming a Flood Risk

It's highly noticeable, even without looking at the numbers, that the risk of flooding in California is significantly high. This is highly due to the constant fires that are also constantly presenting potential impacts to future floods. The risk of floods in these areas is also significantly dangerous due to destructive debris flows which contain all the toxic chemicals from burnt materials.

These debris flows are commonly due to the surface erosion that we're seeing in areas where there has been a fire. A fire can easily destroy the overall quality of the soil in these areas which is why a small amount of rain becomes the biggest flood hazard with equal destructiveness to the fires themselves. Equally, when that toxic debris flows get into the water supply, there's also a health risk being presented to the residents of the impacted communities and/or areas. 

These threats can happen even with a small amount of rain and it escalates further when we start to talk about heavy rains. The stronger the rain in these areas is, the more vicious the debris flows become, and once this flows into reservoirs and dams, it's a bigger problem for these communities.

How Do the California Fires Impact Flooding?

How Flood Insurance Helps

Flood insurance is becoming more relevant now with the current climate change and it's one of the most essential insurance policies you can have. It's important to note that flood damage to your property won't be covered by any other insurance other than flood insurance.

In the case of California and the current condition it's facing with the bomb cyclone and atmospheric rivers, we encourage that each resident will get one for their property since there's a lot of flood hazards going around presented not just by rain, but also through those wildfires.

Flood insurance covers any loss that was resulted because of a flood. Any surface water will be considered as a flood once it affects at least two acres of land or two properties. This means that what happened in California and the west coast due to the bomb cyclone already qualifies for flood insurance coverage.

Flood Insurance Options in California

How Do the California Fires Impact Flooding?

When you buy flood insurance from the government-backed market under the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP), you will get covered for both dwelling and contents. Dwelling coverage or building coverage will max out at $250,000 and contents coverage will max out at $100,000.

This will be all of the coverage you'll be getting through FEMA and the NFIP. The only other additional coverage you can get is the Increased Cost of Compliance (ICC) which can really help you protect your home from floodwaters. This is an additional $30,000 solely dedicated to flood mitigation however it must be said that this is something that your community should apply for.

You can learn more about federal flood insurance and the NFIP Risk Rating 2.0 by checking out our previous blog.

How Do the California Fires Impact Flooding?

On the other hand, you also have the private flood insurance market which offers no coverage limits on their flood policies. This means two things: one, you don't have to take up all that $250,000 even when you don't need it and, lastly, you can make sure that you get covered for more than $250,000.

Private flood insurance also helps you find more peace of mind as it can also provide replacement costs, additional living expenses, and loss of use.

Regardless of your flood insurance carrier choice, it's still best to keep a policy intact with your property. Climate change is drastically changing the landscape of how natural disasters — from droughts to sudden downpours of rain — and we must be vigilant to keep up with these changes.

If you have any questions on how fires impact flood insurance, where your flood insurance coverage starts and stops, or anything about floods, click below so you could call us or go to our Flood Learning Center where we try to answer your flood insurance questions.

The Flood Insurance Guru | 2054514294

Remember, we have an educational background in flood mitigation which lets us help you understand your flood risk, flood insurance, and mitigating the value of your property long-term.

Flood Insurance Guru | Service | Knowledge Base