Flood insurance is not a type of coverage many people think of but it is one which is of vital importance. Here’s why it needs to be a priority.

In mid-October 2018, Trinidad and Tobago was hit by the worst flood it has experienced in the past fifty years.

As the rains came down, water quickly engulfed cars and houses. National Security Minister Stuart Young estimated that some 3,500 households and between 100,000 and 120,000 per­sons were affected by the inundation.

Here are some insurance takeaways to help you be better prepared:

Know Your Coverage

To guarantee more holistic protection, understand the difference between home insurance and contents insurance. The assumption is often made that home insurance covers all contents, however, this is not the case. It is crucial to know what your specific policy covers.

Whereas home insurance (also known as building insurance) insures the physical walls of your home, content insurance covers furniture, appliances, electronics, jewellery and so on.

Home insurance covers your home’s physical structure. This includes your permanent and fitted fixtures, such as baths, toilets, wardrobes, and cupboards. Simply put, it includes anything you wouldn’t be able to take with you.  You should always check with your insurance provider to note what the details of what your home insurance covers.

Content insurance is applicable in the case of flood damage to the moveable items inside your house, such as furniture, art, clothes, jewellery, electrical items, and other personal belongings. Make sure your policy includes the contents of your outdoor sheds/car garage, should you need it. This ties into our second point.

Avoid Underinsurance 

When purchasing insurance, properly valuate the entire property, both fixed and movable elements. You may be tempted to state a lower rebuild cost for your house or to underestimate the replacement cost of your home’s contents in an attempt to get a cheaper quote. However, you may pay more for this in the long run.

Making the mistake of underinsuring your home and contents may even lead to problems in making a claim after the disaster strikes. Consider the area in which you live. Is it in a high-risk flood zone? If you live on or near a floodplain, be sure to check your insurance covers you. When choosing a home, be mindful of the area you would like to reside in as location often impacts your premium.

Comprehensive Coverage does not include Flood Coverage

Thirdly, motor insurance does not automatically cover flood. This is something that usually has to be added on, even with comprehensive insurance. Be sure you discuss the details of your coverage regarding floods with your insurance provider.

Flood insurance is not a type of coverage many people think of but it is one which is of vital importance. Those caught without flood insurance often find themselves in a predicament, having to spend a lot of money to recover valuable possessions. Even a few inches of water can cause hundreds of thousands of dollars in damage.

Contact Maritime Financial Group to connect with one of our financial advisors and learn more about which insurance plan is right for you.

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Contact our Claims department if you need information on or need to submit a claim.