Flood, Overland Flood, Overland Water

With climate changes occurring unlike ever before we are witnessing an increase in dangerous and damaging weather phenomena in many areas. In Canada floods have become so common that some property insurance companies are offering the optional add-on of Overland Water Coverage - the Canadian name for what is called Flood Coverage in America. Floods are now the most prevalent natural disaster in Canada. In the U.S. it is also a major type of natural disaster and as such it is a requirement for people that are financing their homes in coastal areas to have flood insurance. There are other areas in the U.S. in which property owners with federally insured mortgages are required to have flood insurance. FEMA, the Federal Emergency Management Agency has designated different zones across the country based on their likelihood of flooding. Mortgage holders in the highest risk zone, known as Special Flood Hazard Areas (SFHA's) also are required by the government to get flood insurance. Property owners can consult the FEMA website on this topic to see what zone they live in and the risk of flooding in that zone: https://msc.fema.gov/portal/home

Flood insurance in America or Overland Water insurance in Canada covers the building on the property and the contents of the building but not the land that the building is on. There are different deductible amounts for the structure of the building and the contents within it and even differences between the coverage for the main floor and higher compared to any areas below the main floor. The details can get tricky so it is recommended that in the case of a damages claim the property owner should enlist the help of an insurance expert to ensure that they are getting the appropriate award settlement.