Why You Need Flood Insurance

Why You Need Flood Insurance

It’s no secret that spring storms can bring heavy rainfall in short amounts of time. This not only can cause rivers and lakes to rise outside their banks, but it can also cause flooding in city streets and near homes.

Contrary to what many may think is covered under their insurance policy, a Home or Renter’s insurance policy will not cover a flood. If you live in an area prone to flooding, you need to also purchase flood insurance. Floods are one of the most dangerous disasters in the United States, and if you don’t purchase flood insurance, they can cost you big time. The National Flood Insurance Program (NFIP) estimates that just one inch of water in a 2,000 square foot house will result in $23,000 in damage.

Flood season has arrived. Here are five reasons you need flood insurance now:

1. It’s not just for homeowners and businesses.
Flood coverage is available for renters. Condo owners can also purchase it. It will cover damage to your possessions from a flood.

2. Flooding is not covered under your standard policy.
Homeowners and renters need to purchase separate flood policies. Umbrella insurance does not usually cover flooding, either.

3. Floods aren’t limited to flood plains.
Every state has experienced flooding, and it can happen anywhere. The NFIP estimates that 25 percent of flood claims come from areas outside of high-risk flood zones.

4. Flood insurance doesn’t take effect immediately.
There is a 30-day waiting period from the date you purchase the insurance until you are covered, in most cases.

5. It’s often not as expensive as you think.
The average policy costs about $700 per year. The higher your risk, the higher your premium. Costs do vary depending on your flood risk and the year and type of construction. Keep in mind, the average residential flood claim amounted to more than $38,000.

Don’t delay, there is a 30-day waiting period before flood coverage goes into effect. Call a California Casualty advisor today at 1.877.652.2638 to make sure you’re covered. Or, contact our Agency Services department at agencyservices@calcas.com.



This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.

Soaking up Seven Myths about Flood Insurance


If you live in a flood prone area, you should have flood insurance. It seems like common sense but many of us still don’t get it. As rivers crested to new heights and raging waters destroyed homes in Central and Southern Texas this spring, the Insurance Council of Texas fears that less than half of those with damage purchased a flood policy. Many thousands affected by record flooding in South Carolina may also be without flood insurance; state insurance companies estimate that only 10% of residents purchased flood protection.

Here are some reasons why people don’t buy flood insurance:

  1. They think their homeowners or renters insurance covers flooding
  2. They think the government will help them
  3. They think it’s too expensive
  4. They didn’t know it was available

Floods are the number one disaster in the United States and the National Flood Insurance Program estimates that just three inches of water in a 2,000 square foot house will result in $23,000 in damage.

With that in mind, let’s soak up seven myths that might be floating around about flood insurance.

  1. Flooding is covered under most homeowners insurance.

It is not. Homeowners and renters need to purchase separate flood insurance protection. Umbrella insurance does not usually cover flooding.

  1. I don’t live in a flood prone area so I don’t need it.

Every state in the union has experienced flooding and it can happen anywhere. The National Flood Insurance Program estimates that 25 percent of flood claims come from areas outside of high-risk flood zones.

  1. The Federal Government will help pay for flood damage.

Federal disaster assistance is only available when the president formally declares a disaster. The aid comes as low interest loans, not compensation for your damage.

  1. Flood insurance is only for homeowners and businesses.

Flood insurance is available to renters. It is also available to condo owners and renters. It will cover damage to your possessions from a flood.

  1. Flood Insurance is expensive.

The average policy costs about $700 per year: the higher your risk, the higher your premium. Keep in mind the average residential flood claim amounted to more than $38,000.

  1. I can get flood insurance coverage immediately.

In most cases there is a 30 day waiting period from the date you purchase the insurance before it goes into effect.

  1. I can shop around for the best flood insurance deal.

While you can purchase flood insurance from numerous companies, the price is set by the federal government and doesn’t vary. Rates do vary depending on your flood risk and the year and type of construction.


If you have experienced flood damage, here are some things you should be doing:

  • Make sure the building is safe to enter – mud and water may contain dangerous chemicals, bacteria or poisonous snakes and there could be a risk from electrocution
  • Secure the property from further damage or theft with plywood, tarps or plastic
  • Remove branches and other debris
  • Before cleanup, take photos or videos of all the damage
  • Throw out water damaged food including canned goods
  • Keep receipts for any items you buy to make temporary repairs and for living expenses, they may be covered if your loss is insured or can be used for tax purposes if the loss is not covered
  • Contact your insurance company – flooding and other water damage to your vehicle is covered if you have comprehensive auto insurance


For more information about what is and is not covered with flood insurance, visit https://www.floodsmart.gov/floodsmart/pages/residential_coverage/whats_covered.jsp.


California Casualty can help keep you above water with flood insurance. Find out more today at 877.652.2638 or visit www.calcas.com/flood-insurance. Make sure your property is fully protected from wind, fire, lightning, hail or falling trees with a policy review by calling an advisor today at 1.800.800.9410 or visiting www.calcas.com.


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What You Need to Know About Flood Insurance

In the wake of Hurricane Sandy, many homeowners are dealing with Flooding damages.

We wanted to provide you with some basic Flood Insurance information* so you can be sure you are fully protected:

  1. Standard homeowners insurance does NOT cover flooding: Your homeowners insurance policy will not cover flooding damage. Only Flood Insurance covers this kind of damage. To learn more about Flood Insurance through California Casualty, click here or scroll down to read more.
  2. Flood damages are expensive: Just two inches of water could result in more than $7,000 in damages. The higher the water, the higher the costs.
  3. New Policies take 30 days to kick in: If your home is at any risk of flooding, protect it now. Flood insurance policies take 30 days to take effect.
  4. Flood insurance offers two types of protection: Flood insurance protects your building and the contents inside of the building. Neither type protects the land they occupy. 
    1. Building Coverage includes:
      1. The insured building and its foundation
      2. The electrical and plumbing systems
      3. Central air conditioning equipment, furnaces, and water heaters
      4. Refrigerators, cooking stoves, and built-in appliances such as dishwashers
      5. Permanently installed carpeting over unfinished floors
    2. Contents coverage includes:
      1. Clothing, furniture, and electronic equipment
      2. Curtains
      3. Portable and window air conditioner units
      4. Portable microwaves and dishwashers
      5. Carpeting that is not already included in property coverage
      6. Clothing washers and dryers

Securing Flood Insurance through California Casualty: 

We provide flood insurance through  the National Flood Insurance Program to offer you the best rates and service. It was created by Congress in 1968 to help property owners protect themselves financially against flood damages. To learn about the program, click here.

*These represent typical coverages, you should speak with an agent to verify what is and is not covered


Flood Insurance is Crucial

This has been a difficult spring in terms of natural disasters – from devastating tornadoes to a large number of hail storms. Currently, we’re watching towns in the south being submerged under water, and rivers in flood stages that haven’t been seen in recent history.

Our hearts go out these families, and you can rest assured that we are doing everything we can to help our customers who have been affected by all of these disasters. For many, seeing the flooding (and with hurricane season bearing down on us) begs the question – “Am I covered if this happens to me?” This press release just came across my desk, and hopefully it will answer some of those questions.

CHICAGO—With hurricane season starting on June 1st, the Property Casualty Insurers Association of America (PCI) urges homeowners, business owners and renters who do not currently have flood insurance to buy it right away.

“Many insurance consumers do not realize that their standard homeowners policy does not cover flooding, and that flood insurance must be purchased separately,” said Don Griffin, PCI’s vice president, personal lines. “Flood insurance is sold through agents who sell policies on behalf of the National Flood Insurance Program (NFIP). If you have only a standard homeowners policy and suffer flooding from a hurricane, the flood damage will not be covered under that policy, so it is crucial to have flood insurance. Because NFIP policies don’t take effect for 30 days, the sooner people can buy flood insurance, the better.”

While having flood insurance in place is important in coastal areas, recent heavy rains have brought flooding to much of the nation’s heartland as well. Unfortunately, according to the NFIP, more than 50 percent of properties in high-risk areas remain unprotected by flood insurance, and in the northeast and Midwest, coverage rates are significantly lower. Even in coastal areas that live under constant threat of hurricanes or tropical storms, many homeowners or renters do not have this crucial coverage.

According to the NFIP, floods are the number-one natural disaster in the United States, and 75 percent of all federally declared disasters over the past five years have involved flooding. There is a 26 percent chance that a home will suffer flooding over the course of a 30-year mortgage, and U.S. flood losses have averaged $2.4 billion per year over the last decade.

“In any part of the country where flooding is a possibility, property owners and renters should absolutely make sure to protect themselves and their belongings by purchasing flood insurance,” Griffin said.

Individuals who currently have homeowners or renters insurance should talk to their agents to see if their insurers sell flood policies. They can also locate agents who sell flood policies through the agent locator on the NFIP website.

Insurance 101: Getting Your First Auto Policy

Insurance 101: Getting Your First Auto Policy

Buying your first car is a right of passage. Getting your first auto insurance policy is one, too. Whether you’ve graduated from your parents’ policy, just moved out, or purchased your first car, here’s what you need to know about getting that important first policy.

Learn about the types of coverages.

An auto policy is made up of different coverages. You choose the types you need from a range of options. Some coverages are required by law. Others are optional but will help to fully protect your investment.

  • Liability: If you are at fault in an accident, and others are involved, it’s good to have liability coverage. Liability coverage is required by law in most states. It covers you for bodily injury and property damage you cause to others. However, it does not cover any damage to your own vehicle; that’s covered by collision. It also does not cover injury to you and your family; it only covers the people in the other car.
  • Collision: This coverage is if your car is damaged in a collision with another car or an object, such as a fence. Your collision coverage will pay for repairs minus the deductible. Collision coverage is not required unless you’re leasing a car or paying off a loan on a vehicle. However, it may be good to have, especially in the event of an accident.
  • Comprehensive: Comprehensive coverage is for natural disasters, fires, vandalism, theft and animals that damage your vehicle. Think of it as “bad luck coverage.” Comprehensive coverage is not usually required unless you’re leasing a vehicle or paying a car loan. However, it’s valuable to protect your car.
  • Medical expenses: If you or others are hurt in an accident, you will want medical expenses covered. You will either be able to get medical payments coverage or personal injury protection (PIP). These coverages apply to everyone in your car whether or not you are at fault in the accident. This type of coverage is good to have, as your health insurance may not cover auto accidents and does not normally protect your passengers. PIP is only available in some states and may be mandatory if your state offers it.
  • Uninsured or underinsured motorist: You may encounter drivers who are not insured or who are underinsured. If so, you will need insurance to cover your car and the people in your car if hit by an at-fault driver in that situation. Uninsured/Underinsured Motorist Property Damage (UMPD) helps pay for repairs to your vehicle. Uninsured/Underinsured Bodily Injury coverage pays for medical treatment, lost wages, pain and suffering for you and your passengers. These are optional coverages in most states. In some states, you are not allowed to carry collision and UMPD at the same time. Also, sometimes UMPD has a policy maximum, or cap on the amount it will pay.

See our infographic for a quick overview of car insurance, or consult our blog on liability, collision and comprehensive coverage for more detail on these coverages.


Know what affects your car insurance premiums.

Your car insurance premium will be determined by the coverages you select and other factors that contribute to the risk you present as a driver.  These include, but are not limited to:

  • Where you live: If you live in the city, there’s greater risk for vandalism and theft. If you live in a location prone to floods, wildfires or other disasters, you could pay more as well. You don’t necessarily have to move to get better rates, but sometimes moving into a neighboring zip code can save you some money.
  • How often you drive: The more you drive, the greater chances you have to get into an accident—even if you’re a safe driver. So, people who only drive their car for leisure will pay less than others with a long commute.
  • Your car’s make and model: Generally, cars that are more expensive will cost more to replace; therefore, it will cost more to insure them. Cars that are highly rated for safety, or that include certain safety features, may qualify for a reduction in your premium.
  • Your driving record: Insurance companies use your past behavior to predict your future behavior. That’s why drivers with few or no accidents, and few or no moving violations like speeding tickets, pay less than those with lots of claims. In many cases, companies keep the violations on record for 3 years. If you have a clean driving record otherwise, you may qualify for a lower rate.


Tips to Save Money on Your Policy

  • Shop around. You’ll pay more as a first-time driver and so it’s always good to compare pricing. Compare quotes for insurance but be sure that you are looking at similar coverages or it won’t be a fair comparison.
  • Raise your deductible. Since the deductible is the amount your insurance provider will subtract from an insurance payout, you’ll want to select a deductible that you’re comfortable paying out-of-pocket after a loss. However, if you can afford to raise the deductible, you could lower your premium.
  • Reduce your annual mileage. Consider carpooling or taking public transportation to reduce your mileage, which in turn can reduce your premium. In most states, your insurer pulls reports to determine annual mileage. But your daily commute mileage to work each day can impact rates so it’s a good idea to live close to where you work.
  • Ask about discounts. You may get a discount for installing an anti-theft device. You may qualify for affinity or association member group discounts. At California Casualty, we offer special group rates for educators, nurses, and public safety employees.
  • Maintain a good insurance score. This score, known as the Financial Responsibility (FR) Score, is allowed in most states, and has a big impact on your premiums.


Insurance companies use the same basic information to determine your rate. At California Casualty, we have our own unique formula to help our clients save money. Learn more by getting a free quote at https://mycalcas.com/quote.


This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.




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