Did you know flood is excluded under most homeowners policies?

house surrounded by water

Flood is the top natural disaster in the U.S. However, most homeowners insurance policies exclude flood coverage. According to the Insurance Information Institute, only 14 percent of homeowners in the U.S. have a flood insurance policy.1 The National Flood Insurance Program (NFIP) states that more than 20% of NFIP insurance claims are filed by those who aren’t located in high-risk flood zones.2

The NFIP defines flood as a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Our definition is broader. Basic flood coverage can be purchased from the NFIP with up to $250,000 for the structure of your home and up to $100,000 for personal property.3 Understanding that is not enough coverage for your family, Nationwide Private Client offers broader primary flood coverage with much higher limit options than NFIP.

How Nationwide Private Client responds

The following table compares flood coverage from Nationwide Private Client Flood versus NFIP:

Coverage Private Client flood endorsement4 NFIP flood policy3
Physical damage
Physical loss or damage to your home and other structures (including debris removal caused directly by flooding/mudflow)
Options available up to $1,000,000 Up to $250,000
Personal property
Physical loss or damage to your personal property (caused directly by flooding/mudflow)
Options available up to $300,000 Up to $100,000 (limitations apply)
Building ordinance
Additional costs to rebuild in compliance with required building ordinance and law upgrades
Up to $75,000 Up to $30,000 (only state/local floodplain management law/ordinances - up to max limit on policy)
Additional living expenses
Increase in your normal living expenses necessary to maintain your standard of living for the reasonable amount of time required to restore your home to a habitable condition
Up to $250,000/up to one year Not covered

Private Client also offers up to $10,000 for preventative measures for your home versus only $1,000 from NFIP. We cover up to $25,000 for structural engineering inspection or debris removal if condemned; reimbursement for additional living expenses for up to 30 days if you are forced to evacuate your home; and fair rental value for up to one year to restore your rental property to a habitable condition - none of which are available with an NFIP policy.

How you may be at risk

  • Your $1 million home is zoned in a moderate-to-low risk flood zone, but your city receives a downpour of rain the media is labeling a “100-year storm”. You had to evacuate quickly as the rivers and streams rose rapidly and weren’t able to take all your valuables with you. Your home is severely flooded and will take 10 months to restore back to a habitable condition.
  • Your home is damaged from a flood. During the rebuilding process, your contractor advises you that in addition to covered repairs to your home, upgrades need to be implemented per current building code laws that will cost you another $65,000.
  • Your home is in imminent danger of flood due to extreme weather conditions. You prepare by hiring a team to place ample sand bags and flood control barriers around your home to help prevent water from flowing into your basement.

The Nationwide Private Client flood policy is designed with these scenarios in mind, but you may only be partially covered with a NFIP flood policy. If you only have a homeowners policy without a flood endorsement, you will likely have no coverage.

Why it’s important for you

El Niño conditions may bring flooding to areas that are normally at lower risk. Talk to your agent about whether or not you are adequately protected from a flood damaging your home and personal property.

Nationwide Private Client offers these added benefits:

  • Claims — Exceptional claims handling provided by Nationwide Private Client.
  • Financial strength — Nationwide, a Fortune 1005 company, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A1 by Moody’s and A+ by both A.M. Best and Standard & Poor’s.6
  • Charitable giving — At Nationwide, we strongly believe in being good corporate citizens where we work and live. Since 2000, the Nationwide Foundation has committed more than $355 million to charitable organizations across the U.S. Nationwide Private Client continues to demonstrate this core value through its Partners in Giving program, helping numerous lives each year.

Why Nationwide Private Client

Nationwide Private Client is dedicated to helping protect the assets and reputations of our clients. Our highly personalized insurance products, services and concierge-style claim management are thoughtfully designed to meet the distinctive needs of affluent individuals and families. We are committed to providing you a superior experience whenever you need assistance.

[1] iii.org/fact-statistic/flood-insurance
[2] floodsmart.gov/floodsmart/pages/media_resources/stats.jsp
[3] As of 11/2015 https://www.floodsmart.gov/floodsmart/pages/residential_coverage/rc_overview.jsp
[4] Available to clients with homes in low to moderate flood zones (B, C, X). Coverage does not apply to landslide. Other limitations and exclusions may apply. Consult with your insurance agent.
[5] Based on revenue, Fortune (June 2015).
[6] Ratings affirmed 9/12/13 by Moody’s, 4/2/14 by A.M. Best, and 5/13/14 by Standard & Poor’s.

Speak to a Private Client-appointed agent today