The record-breaking floods followed one of the most devastating hurricanes the United States has ever known. In fact, in the southeastern areas of the Lone Star State, most homeowners don’t even have flood insurance. And who can blame them? There was never a precedent in the locality. While hail and windstorms are a constant concern for homeowners and businesses, no one imagined that rainwater would contribute to the huge damage suffered and spread across the country in recent days. Surely not mortgage companies, as they don’t even require it of borrowers!

But now that the death toll has risen and those who have been forced to flee their homes in search of refuge, one thing is clear. When things finally settle down, homeowners and people in the commercial sector will have to deal with epic losses and damages on their own due to a lack of related coverage.

For homeowners without flood coverage, the facts are uncomfortable, as they are painful: A standard home insurance policy does not protect against floods and flood-related damages. The insurance industry emphasizes in no uncertain terms that compensation is only provided to those who had the foresight to purchase flood insurance in the event of water damage from atmospheric conditions such as a hurricane, tropical storm, or other inclement weather.

A little history about flood insurance:

It was 1968 when the United States Congress laid out its flood program. Designed to help residential and commercial property owners from the financial ravages of a damaging flood, their policies are offered in all communities that are involved in the rules of engagement.

Flood coverage protects homeowners or tenants from damage to the building and contents.

This includes the following:

• The structure, as well as the foundation of the building.

• Electrical and plumbing systems

• Central air conditioning, oven, water heater.

• Refrigerator, stoves, and any appliances installed, such as a dishwasher

• Carpet that has been installed on bare floors

• Personal clothing and electronics

• Curtains

• Transportable heaters and air conditioners

• Carpets other than those included in the coverage of the property

• Washing machines and drying machines

Generally, flood compensation claims include:

• Replacement cost value: up to eighty percent of the amount needed to replace property damage in a single-family primary residence

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• Actual cost value: replacement costs at the time of loss reduced by physical depreciation

Note: The flood program always uses the actual cost value to determine reimbursement for personal property.