Flood Insurance Standard Policy
What Are the Coverage Limits for Buying Flood Insurance in New Jersey?
Generally, under the National Flood Insurance Program, a homeowner (including an owner of a residential unit in a condominium building) may purchase up to $250,000 of building coverage and up to $100,000 in personal property coverage. A business owner may purchase up to $500,000 in building coverage to cover his owned building, and up to $500,000 in personal property coverage to cover his owned inventory and equipment.
Is a Standard Policy Enough?
If your commercial building or residence is worth more than $250,000 we can provide additional coverage to to ten million dollars.
What Should I Do if My Property is Flooded?
- Read your flood policy; what coverages did you purchase?
- Begin to dry out the building and personal property
- Keep a/c (or if cool, furnace) running, to assist in drying out of the property; if no heating/cooling, keep windows open, have fans blowing to assist in drying
- Try to find documents relating to the purchase of the flood-damaged property
- If your carpet and pad have been saturated by the floodwater, cut and remove the carpet and pad; please save a small (2-feet by 2-feet square) piece of the carpet to show to the adjuster
- If your carpet is damp, pull the carpet loose, remove the pad and dry the floor
- Keep oriental rugs wet — roll them up and take to professional cleaners for proper cleaning or evaluation
- Clean floors, walls, cabinets with mixture of 1-part bleach, 4-parts water
- If cleaning is removing water lines, please take photos of the interior and exterior water line depth
- Separate the damaged from the undamaged property; maintain control over the damaged property (keep it in the back yard or garage or shed if possible so that thieves do not remove it)
- Begin writing a list of damaged property for the adjuster
- Call for appliance repair company to have technician clean, service and provide repair estimate for flood-damaged appliances
- Call for heating company to have technician clean, service and provide repair estimate for flood-damaged heating/cooling equipment
Am I Eligible for Government Aid?
Having a NFIP flood insurance policy on your building and contents does not prevent you from receiving government aid for flood, however, the government aid rules normally will reduce any government aid by the amount of NFIP insurance proceeds received. Normally, if you do not have NFIP flood insurance and if you receive government aid for flood damage, you will be required to obtain flood insurance coverage because of that aid.
What is the Definition of a Basement
The flood insurance policy defines a basement as any area that has the floor below grade on all sides. This means that if the floor is 12 inches below grade on all sides, 7 feet on all sides, or 7 feet on three sides and 12 inches on the fourth side, is is a basement. If the area is at or above grade on any side, that area is not a basement. Some people are surprised to learn their “walk-out basement” isn’t classified as a basement.
My Property has a Basement – Am I Covered?
Generally, if you purchased Building Coverage, the flood policy will pay for flood-related cleanup, for damage to the furnace, water heater, water softener, electrical and damaged foundation elements. The flood policy will pay to replace unfinished drywall; the flood policy will NOT pay for paneling, doors, millwork, wallpaper, painted surfaces, carpet nor for any finishes in the basement. Generally, if you purchased Personal Property Coverage, the flood policy will only pay for flood damage to clothes washer, clothes dryer, freezer (but not for a refrigerator nor refrigerator/freezer combination) and the food in the freezer.
For more policy and claim statistics, visit the FEMA-NFIP, National Flood Insurance Program