Flood insurance covers damage to buildings and contents caused by flooding. One of the most common misconceptions about flood insurance is that it’s only necessary for properties that are close to rivers, the coast or other bodies of water.
Flooding can occur anywhere and may result from heavy rain, snowmelt, hurricanes or other natural disasters. It can also be caused by surface water, waves, tides, storm surge or the overflow of any body of water — including spray — whether driven by wind or not.
Floods are one of the most common natural disasters that cause severe property damage and financial losses. Many businesses and homeowners are underinsured or uninsured for flood damage. A common misconception is that coverage for flood is included in commercial property or homeowner policies. Most commercial and homeowner policies do not offer flood insurance due to the catastrophic nature of flooding which is why the federal government created the National Flood Insurance Program.
The South Carolina Municipal Insurance and Risk Financing Fund provides flood coverage in excess of the NFIP limit of $500,000, whether or not the NFIP policy is purchased, in cases where a municipality has property in a high hazard flood zone area such as AE.
For more information on flood coverage offered by SCMIRF, contact Robert Collins, underwriting manager at rcollins@masc.sc or 803.933.1279.