By Kevin Volz • 25 May, 2023
Were you aware??? -Floods are the number one disaster in the United States. -More than 20% of all flood insurance claims come from areas in low to moderate-risk flood zones. -Just one inch of water can cause large financial losses. -Almost everyone lives or works near a flood zone. -Standard home and business insurance policies typically do not cover flood insurance. As an insurance agent primarily serving Colorado, flood insurance is a topic not discussed very often. General reasoning is that we live in an arid climate with relatively low annual precipitation…why spend money on something that has a low probability of occurrence? Well, tell that to the residents of Louisville, Colorado or other mountain towns that have been devastated by wildfires, statistically low occurrence probability events. This brings us to May 2023! Historically, May is the wettest month in Colorado with an average precipitation of 2.5 inches. As of May 17, 2023, Denver International Airport recorded 4.7 inches, almost double the average, and officially cracks the top 10 wettest May’s ever. If you’re curious, the wettest May in Colorado happened in 1876, over 8.5 inches…crazy by comparison! Since May 17 th , I’ve spent a majority of my days on the phone with customers discussing coverages and limitations of homeowners policies, and of course a fair amount of time speaking with claims departments. I thought I’d take a moment to clarify flood insurance… Do I need flood insurance? Just because you haven't experienced a flood in the past, doesn't mean you won't in the future. The reality is a flood can happen to anyone, anywhere, at any time. Common flood causes include rainfall, river-flow, topography, and changes to the landscape due to building and development. Here is a link to help you understand flood risk in your area: https://msc.fema.gov/portal/home Is flood insurance mandatory? Often, homes and businesses in high-risk flood zones are required to have home or business flood insurance coverage. Don’t wait until it’s too late… Typically, there's a 30-day waiting period after a flood insurance policy is purchased before it becomes effective. Understanding that floods are one of the top natural disasters in the country, it is encouraged that you review your flood insurance options. What is not covered by flood insurance? Like most insurance policies, there are usually specific coverage exclusions and limitations. Examples of uncovered or excluded losses: -Damage caused by moisture, mildew, or mold that could have been avoided by the property owner. -Additional living expenses such as temporary housing. -Most self-propelled vehicles such as cars, including their parts (auto insurance with comprehensive coverage will cover flood damage to vehicles). -Property and belongings outside of a building such as trees, plants, shrubs, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools. -Financial losses such as business interruption or loss of use of insured property. What does flood insurance cover? The NFIP (National Flood Insurance Program) offers two types of flood insurance — building and contents — each with a separate deductible. A deductible is the amount of a claim you’re responsible for paying. Building coverage ($250,000 limit) Building coverage is insurance for the structure of your home (akin to dwelling coverage on a homeowners policy). This pays for flood damage to things like: Electrical and plumbing systems, water heaters, furnaces, foundation walls, built-in appliances, cabinets, permanently installed carpets, detached garages, fuel and well water tanks, solar energy equipment, and window blinds. Contents coverage ($100,000 limit) Similar to personal property coverage on a homeowners or renters policy, contents coverage pays for damage to your “stuff”. Typically, this includes clothing, furniture, electronics, curtains, and appliances. The NFIP covers your belongings on an “actual cash value” basis. This means that if you file a flood insurance claim, your payout will reflect what your belongings were worth at the time of the flood, not a “replacement cost”. Is there flood insurance with limits beyond what the NFIP offers? Yes, broader coverage and higher limits are available via private flood insurance policies. Further resources: Flood Insurance | DORA Division of Insurance (colorado.gov) At Badger Insurance Advisors, we understand that “stuff” happens! Whether you’re in our neighborhood of Aurora, or anywhere else in Colorado, we’re here to assist with all your personal insurance needs. Find us on the web at www.badgerinsuranceadvisors.com or call us at 303-359-1799. Kevin Volz – Agency Principal Badger Insurance Advisors
FAQs
The numbers in the coverage refer to the maximum amount your insurer will pay out for each type of claim. So, in a 100/300/100 policy, you would have $100,000 coverage per person, $300,000 in bodily injury coverage per accident, and $100,000 in property damage coverage per accident.
What would 100-300/100 mean on an insurance policy? ›
Buy at least standard 100/300/100 coverage, which translates into $100,000 coverage per person for bodily injury, including death, that you cause to others; $300,000 in BI per accident; and property damage up to $100,000. If you have a high net worth, boost your BI coverage to 250/500/100.
What does the 100 in 100 300 50 refer to on a car insurance policy? ›
Having a 100/300/50 auto insurance policy means you have $100,000 in coverage for bodily injury liability per person, $300,000 for bodily injury liability per accident, and $50,000 for property damage liability.
What do policy limits of 200-300/100 on an automobile insurance policy mean? ›
The 100/300/100 figures indicate different coverage levels of bodily injury liability costs in your insurance policy: $100,000 for bodily injury liability per injured person in an accident. $300,000 limit for bodily injury liability per accident. $100,000 for property damage per accident.
What does 100 insurance coverage mean? ›
100/300 refers to the amount of bodily injury liability coverage you have on your car insurance policy. The two numbers represent the following insurance coverage limits: $100,000 per person for bodily injury liability coverage. $300,000 per accident for bodily injury liability coverage.
What are the three limits of insurance policies? ›
Types of Insurance Policy Limits
- Per-occurrence limits: The maximum amount an insurer will pay for a single event/claim.
- Per-person limits: The maximum amount an insurer will pay for one person's claims.
- Combined limits: A single limit that can be applied to several coverage types.
50/100/50 Insurance Explained
| Limit | Coverage |
|---|
| 50 | $50,000 in bodily injury liability coverage per person |
| 100 | $100,000 in bodily injury coverage per incident |
| 50 | $50,000 in property damage liability per incident |
May 20, 2024
Comprehensive covers damage to your vehicle from unexpected non-collision incidents like theft, animal damage, falling trees, and weather damage. Collision covers damage to your vehicle that's the result of a collision with another vehicle or object.
What does 100 deductible collision mean? ›
If your deductible is $100 and you cause $350 of vehicle damage by backing into a tree, you would only have to pay your $100 deductible, while your insurance would pay the other $250. However, you could spend more on your premium by having a lower deductible and never end up filing a claim.
What does it mean when insurance covers 100%? ›
Out-of-pocket Limit – The most you could pay during a coverage period (usually one year) for your share of the costs of covered services. After you meet this limit the plan will usually pay 100% of the allowed amount. This limit helps you plan for health care costs.
Which of the following explanations of a 100/300/100 auto liability policy is correct? The first 100 indicates a $100,000 per person limit for bodily injury (BI). The 300 indicates a $300,000 limit for bodily injury per accident, and the second 100 indicates a $100,000 limit in property damage (PD) coverage.
What is the maximum insurance coverage? ›
Maximum coverage is the most coverage an insurance company will provide during a specific period. If a policyholder needs coverage beyond this amount, then they would have to pay out-of-pocket or use an alternative form of insurance.
What happens if your insurance policy has an excess of 500? ›
In simple terms, car insurance excess is the amount you agree to pay towards the repair of your car if you need to make an insurance claim. So, if your car's damaged in an accident, there'll be a set amount you'll have to pay towards the repairs and your insurer will cover what's left of the cost.
What does 100-300/100 mean for car insurance? ›
The numbers in the coverage refer to the maximum amount your insurer will pay out for each type of claim. So, in a 100/300/100 policy, you would have $100,000 coverage per person, $300,000 in bodily injury coverage per accident, and $100,000 in property damage coverage per accident.
How do you interpret the numbers 100 300 on your insurance policy? ›
Each number represents the maximum amount your insurance company will pay for a specific part of your liability coverage, so a 100/300/100 policy means bodily injury liability limits of $100,000 per person and $300,000 per accident, and property damage liability limits of $100,000.
What are the best limits for car insurance? ›
You can check with your state's department of insurance or department of motor vehicles to understand what's required. That said, insurance experts recommend at least $100,000 per person and $300,000 per accident for bodily injuries, and $100,000 for property damage, or 100/300/100.
What does 250/500/100 mean? ›
A common policy structure is 250/500/100, which covers up to: 250 = Bodily Injury Coverage — $250,000 for injuries per person. 500 = Overall Maximum Coverage — $500,000 for injuries total per accident. 100 = Property Damage Coverage — $100,000 for property damage per accident.
What does 100 excess mean insurance? ›
Insurance excess is the amount you have to pay towards the overall cost of an insurance claim. It's usually a pre-agreed amount. Your insurer will then contribute the rest – up to the limit of the cover. You'll see insurance excess on insurance products like travel, motor, home and health.
What does 500/500 mean in insurance? ›
A car insurance policy of 500/500 means it would cover up to $500,000 in bodily injury liability coverage per person and per accident. But most insurance companies don't offer split limits this high, instead you can purchase a combined single limit policy.
