Flood damage is devastating aftermath from a natural disaster that can be devastating for any homeowner and their family. Unfortunately, flood damage is not covered under the standard homeowner’s insurance policy in Oklahoma. However, there are many flood insurance options available through local providers. The standard flood insurance policy applies to all types of dwellings and structures including businesses, condos, homes, mobile homes and rentals that are in flood zones. The actual policy depends on the flood zone risk level.
Oklahoma Flood Coverage
Flood coverage was created to protect the inside and outside of the dwelling and cover all damage to property including appliances, dishwashers, cabinets, air conditioners, etc. There is also coverage available for personal property like clothing, furniture, electronics, etc.
Two types of reimbursement methods for flood claims exist. Replacement Cost Value (RCV) represents the cost of replacing the damaged property and is reimbursable to owners of primary residences within single-family homes up to 80% of the building’s replacement cost. Actual Cash Value (ACV) values all other personal property (contents of the building) which is the RCV minus physical depreciation. Personal property will always be valued using ACV.
Is Flood Insurance Required in High-Risk Areas?
Absolutely. Studies show there is a 25% chance of flooding in a high-risk area during a 30-year mortgage. As a result, flood insurance is required by law in high-risk areas as a condition for receiving a mortgage from an insured lender.
What About in Moderate-to-Low Risk Areas?
Residences situated in moderate-to-low risk sections with mortgages from insured lenders are not typically required to have a flood insurance policy. Interestingly enough, around 25% of all flood claims occur in the moderate-to-low risk flood areas so it is always advised to have some type of policy.
Flood insurance policies have varying options and requirements, so it is important to contact LeBo Insurance Services LLC today! LeBo Insurance Services LLC can give you the information you need to make a sound decision about flood insurance policies to protect your dwelling.