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Q. Years in the past, I had flood insurance coverage, and after 55 years, had no downside, even with avenue flooding about 250 ft away. I cancelled the coverage once I learn some tremendous print that the flood insurance coverage was solely legitimate if my neighbor skilled a flood downside additionally. Might that presumably be a requirement on flood insurance coverage? It sounds nuts.
— House owner
A. We’re glad to know that in spite of everything these years, you by no means had any injury however nonetheless have peace of thoughts realizing that injury could be coated.
Let’s discuss these insurance policies.
In a high-risk flood space, flood insurance coverage is obligatory if there’s a mortgage on the property, stated Betty Thomas, a chartered monetary guide and authorized monetary planner with Peapack Non-public Wealth Administration in New Windfall.
She stated if the mortgage has been paid off, the flood insurance might not be wanted however sustaining it will be beneficial.
The 2 varieties of insurance coverage which will cowl damages to your property by water are house owner’s insurance coverage and flood insurance coverage, she stated.
“In case your property was broken by water from a supply inside your private home, then the house owner’s insurance coverage ought to be capable of cowl it,” she stated. “If the water injury comes from an outdoor supply of rising water, nevertheless, homeowner’s insurance is probably not sufficient. On this case, it will be the flood insurance coverage, even when the injury was triggered, no less than partially, by a neighbor.”
Any claims filed for damages attributable to a flood wouldn’t be contingent on in case your neighbor had a flood insurance policy, Thomas stated.
If throughout a flood state of affairs, there’s injury to your property attributable to your neighbor, the neighbor wouldn’t be accountable if the injury was the results of “naturally occurring rain and land situations,” she stated.
Alternatively, if the neighbor altered their property in such a manner that your property floods, you could possibly have some recourse, she stated.
It is best to contact the National Flood Insurance Program to get extra data on the language in your outdated coverage.
E-mail your inquiries to [email protected].
Karin Worth Mueller writes the Bamboozled column for NJ Advance Media and is the founding father of NJMoneyHelp.com. Comply with NJMoneyHelp on Twitter @NJMoneyHelp. Discover NJMoneyHelp on Facebook. Join NJMoneyHelp.com’s weekly e-newsletter.