In the Chicagoland area, torrential rains have already caused major flooding in the South and Southwest suburbs with more storms expected throughout the weekend.
Three inches of rain fell at Midway Airport between 1 a.m. and 4 a.m. Friday.
Schools are closed in the southwest due to massive flooding. Water on roadways has caused major highway closures. The National Weather Service has upgraded flood warnings for the area throughout today and more is coming.
Many believe that flood insurance is only necessary if you live in an area that is more likely to flood.
In fact, the Federal Government now requires you to have flood insurance if the odds of flooding are greater. But flooding can happen to anyone at any time. Keep in mind that water damage and flood damage can be different.
Water damage covered under a homeowner’s policy does not compensate you for damage to structures due to flooding, so your options are small.
On March 21, 2014, President Obama signed the Homeowner Flood Insurance Affordability Act, which continues to identify special flood zones as well as flood insurance requirements. If you are a homeowner and receive financial assistance from the government due to a declared disaster, you may be required to purchase flood insurance. If you sell your home, you are required to inform the new owners that they must maintain flood insurance. If you are a renter and receive assistance, you must also retain a policy.
Many flood insurance policies will tailor your rate to a specific area. If you purchase a policy today, there may be a 30-day waiting period before the coverage is in effect. New homeowners with a less than 30-day closing date may be an exception.
Talk to an insurance agent today that can answer your questions.