Flood, Flood, or Flood: What Insureds Really Mean when they Report a ‘Flood’ Loss

This Partner Perspective is part of a series brought to you by Academy Journal.

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“We’ve had a flood,” says the insured. “Oh, no!” the agent says, “What happened?” What really happened, and the coverage implications of what happened, is what must be considered before the loss occurs – not when this call comes.

“What happened,” really means, “Tell me what you mean by ‘flood.'” The insured’s description of the “flood” event has major coverage implications, including, but not limited to:

• Was the event truly a “flood” as defined within insurance?
• Are there exclusions that apply to the loss?
• Is there a policy available to cover the loss?
• Was the form or endorsement used?
• If covered, how much coverage is provided for the described loss?
• What valuation method is used to value the damaged property?

These and other questions are discussed in the Academy of Insurance’s upcoming flood and water damage class. Click here to register today.