Carson City, NV -
April 20, 2016Nevada is notorious for
experiencing flash floods. Recent rain caused severe flash flooding in Nevada,
especially in the Las Vegas area where several homes and businesses suffered
damages. This type of weather events serves as a good reminder for the importance
of consumers to consider flood insurance to protect their property from this
weather-related hazard.
“We urge consumers to think about
flood insurance before events like the one two weeks ago happen,” said
Insurance Commissioner Barbara Richardson. “They should consult with their
insurance agent to determine if they need this type of insurance now because
there is a 30-day waiting period before a flood insurance policy becomes
effective after purchase.”
Most standard homeowner and
business owner insurance policies exclude damage to property from
flooding. If you are a consumer who has already been affected by flooding or
mud related damage you should consider filing a claim with their home and
property insurer – even if you do not have flood or earthquake insurance. If an
area is declared a major federal disaster area, this proof of claim and its
denial may be required to determine whether a consumer is eligibility for
federal aid.
It is also important to know what
is covered and what is not covered by a flood insurance policy. A typical flood
insurance policy covers “water damage”: (1) flood, surface water, waves, tidal
water, tsunami, seiche, overflow of a body of water, or spray from any of
these, and all whether driven by the wind or not; (2) water or sewage from
outside the residence premises plumbing system that enters through sewers or
drains, or water which enters into and overflows from within a sump pump.
What is not covered in a flood
insurance policy are damages from mudslides or rockslides. Damage from
mudslides, rockslides, and other “earth movements” are only covered under an
earthquake insurance policy or endorsement. Earth movement includes but is not
limited to earthquake, landslide, mudflow, mudslide, sinkhole, subsidence,
erosion or movement resulting from improper compaction, site selection or any
other external forces.
Coverage for damage from floods is available via a flood
insurance policy issued by the National Flood Insurance Program (NFIP)
administered by FEMA: www.Floodsmart.gov
or call 888-379-9531. Consumers can also call their insurance agent, as agents
can facilitate with the application for obtaining a NFIP flood insurance
policy. Be aware that there is a 30-day waiting period before a flood insurance
policy goes into effect after you purchase it. Adding an earthquake
endorsement to your home policy will ensure coverage for any damage caused by
“earth movement” including mudslides.
For more information consumers can obtain flood, home and
earthquake insurance guides by visiting the Division of Insurance website at www.doi.nv.gov. Page 10 of the Flood
Guide provides a general comparison of what is covered and what is NOT covered
for water-related damage in a standard home insurance policy and a flood
insurance policy.
About
the Nevada Division of Insurance
The State of Nevada Division of Insurance, a Division of the
Nevada Department of Business and Industry, protects the rights of Nevada
consumers and regulates Nevada’s $11.9 billion insurance industry. The Division
of Insurance has offices in Carson City and Las Vegas. In 2015, the Division
investigated more than 3,200 consumer complaints and recovered nearly $5
million on behalf of consumers. For more information about the Division of
Insurance, visit DOI.NV.GOV or download the Division’s smartphone app NDOI
Connect today in the Apple App Store and Google Play.
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