Loss caused by rising floodwater is not covered under most homeowners' insurance policies. If you have purchased coverage through the National Flood Insurance Program, you will be protected against property damage caused by flooding. You may also be partially reimbursed for steps you take to prevent flood damage, even if the flood never reaches your building. Check your policy.
Although damage from rising water is not covered by homeowners’ insurance, other damage to your property caused by the same storm may be covered. If the storm damaged your roof, windows or doors and caused water to leak in and cause damage, that damage may be covered by homeowners’ insurance.
When the damage from a flood is extensive, the President may declare the area to be a disaster area. Such a declaration increases the number and amount of federal resources available to local storm victims compared with the relief available after events that affect fewer people.
Insurance coverage and assistance from charitable organizations are available even when an event affects a single household. Some income tax provisions do not require a presidential disaster declaration. The federal aid described here applies only in Presidentially declared disaster parishes and qualifying parishes bordering the declared parishes.
Disaster victims without flood insurance and those whose losses exceed their coverage may obtain loans or other financial assistance. Recipients of federal assistance will be required to purchase and maintain flood insurance. Check with the local Extension Service office for specific information on loans and assistance programs and how you can contact representatives of these programs.
Tips
- The Red Cross helps with immediate building repairs and living expenses when no other immediate assistance is available.
- Merchants and dealers may extend credit for feed, equipment and rehabilitation of buildings and land.
- Farmers Home Administration (FHA) offers agricultural loans only when other credit is not available. Qualifying farmers in disaster areas can get short-, medium- or long-term loans with moderate interest rates.
- Small Business Administration offers medium- and long-term loans for rehabilitation of non-farm homes and small businesses. Interest rates are moderate. Borrowers may obtain additional funds to protect the property from future damage.
- Commercial and federal land banks offer loans with moderately low interest rates for home repairs, improvements, land equipment and livestock.
- Insurance companies offer long-term loans at relatively high interest rates for home repair, improvements, land, equipment and livestock.
- Uninsured losses, and the uninsured portion of losses, should be reported as an additional itemized deduction on federal income tax form Schedule A under casualty losses.
Filing Insurance Claims
These tips are offered to guide you in filing insurance claims for flood damage to your home or seeking other forms of financial relief.
- Call the insurance adjuster immediately.
- Take photos before any cleanup for use as an inventory. Begin cleanup and salvage as soon as possible. Don't wait for an adjuster.
- Follow up on your call with a letter detailing the problem. Keep a copy of the letter.
- Keep damaged materials for proof of loss.
- Leave phone number(s) where you can be reached when the adjuster arrives.
- Ask the adjuster to assess damages to house. The owner should sign proof of loss statement and report additional damage when found.
- Report any theft or looting to the police.
- Protect your property from further damage by making temporary repairs. Save receipts for reimbursement.
- Make a list of damaged articles, and provide any other information the adjuster requests to process your claim.
- Save all receipts related to your temporary lodging and food, if your home is uninhabitable. Some policies pay the difference between normal living expenses and the cost of living elsewhere, although the flood policy does not.
- File a flood claim within 60 days. Make and keep a copy of all information sent to the insurance company for your files.
- Review the settlement steps outlined in your flood policy. If you're dissatisfied with the proposed settlement offer, explain your position. The arbitration process is described in the policy under "Appraisal" in Article 9.