The Flood Insurance Guru Podcast Episode 27: What is Flood Loss Avoidance?

When we talk about coverages on flood insurance, you want to get the best deal out there. Most insurance companies across the country want to help clients and customers find peace of mind under their care and this is no different when it comes to federal flood insurance.

Today, we'll talk about loss avoidance coverage and how it can help you in the future. Keep in mind, insurance doesn't mean you're only covered for what happened, but also make sure that you won't experience significant losses in the future as well.

What is Loss Avoidance

This is a protective action for policyholders to minimize the overall flood damage to their building and personal property. When it comes to coverage on this active measure, the National Flood Insurance Program (NFIP) will provide $1,000 on reasonable expenses to help protect the property of the insured.

Either of two conditions must exist in order for this to kick in: it should cover the general condition of flooding in the area that exists or if a government official issues an evacuation order. This would help move things to higher ground before the evacuation itself.

What is Eligible

The National Flood Insurance Program (NFIP) Loss Avoidance covers things like sandbags, filled to create temporary levees, water pumps, or the plastic sheets put on lumber to create these temporary levees or support the sandbags.

Even the labor that goes into establishing these things, regardless if it's being done by a friend or family member will be covered by this coverage of up to $1,000. Now, it's important to note on the labor that this will be reimbursed at the minimum wage.

Now, we mentioned before that properties being moved to higher ground will also be covered up to $1,000 as well. These things should be within the building or otherwise protected from the elements. The movement of the property must be placed above ground level outside of the Special Flood Hazard Area (SFHA). These properties will be covered up to 45 days by your insurance policy. One thing to note about loss avoidance is that you won't have a deductible on filing for this coverage.

You also want to make sure that you're going to keep receipts to make sure that you're going to be properly reimbursed. This is important since many people forget that loss avoidance is out there and mostly pay these expenses out of their own pockets without realizing they're covered by the NFIP.

Do private flood companies cover this as well? Yes, they also provide coverage on loss avoidance. Minimizing flood damage on your property is encouraged since the lower the losses are, the lower the flood insurance claim they'd have to pay.

If you have questions on loss avoidance, how you're going to get reimbursed, and what's really covered, reach out to us. Remember, we have an educational background in flood mitigation and we want to help you protect your property and its value long term. Click the links below to get started and we'll be happy to help you be prepared through flood education and awareness.