Concerned About Flooding? Erie Insurance Expands Coverage for Water Damage

Rhea-AI Summary

Erie Insurance has launched a new coverage option called Extended Water, addressing the gap in standard homeowners insurance regarding flood damage. This coverage protects against damages from natural disasters, sewer backups, and offers financial assistance for flood avoidance measures, up to $10,000. With floods being the most frequent natural disaster in the U.S., homeowners face potential costs exceeding $25,000 for just one inch of water. Erie Insurance aims to raise awareness about the importance of flood coverage as the frequency of such events increases.

Positive

• Launch of Extended Water coverage to fill the insurance gap for flood damage.
• Coverage includes damages from natural disasters and sewer backups.
• Financial assistance up to $10,000 for flood avoidance equipment.
• Addresses a significant need as floods become more frequent in the U.S.

Negative

• None.

Homeowners can now get Extended Water coverage for added protection

ERIE, Pa., Nov. 3, 2022 /PRNewswire/ -- According to the Federal Emergency Management Agency, floods are the most frequently occurring natural disaster in the United States and yet most standard homeowners insurance policies do not cover flood damage. Erie Insurance is helping to address that need with a new coverage called Extended Water.

Not only does Extended Water protect against damage from floods caused by natural disasters, it's also helpful for other causes of loss such as water that backs up through sewers or drains, which can cause a lot of  damage. According to FEMA, 1 inch of water in a home can cost more than $25,000 in damage.

What does Extended Water cover?

• Damage to basements and other rooms that flood due to flash floods, inland flooding, storm surges, snow melt and more
• The home and its foundation, electrical and plumbing systems, air conditioning equipment, furnaces and heaters, appliances and personal possessions, such as clothing and furniture
• Water that backs up from sewers or drains
• Additional living costs associated with temporarily relocating while the home is being restored
• Flood avoidance reimbursement for certain equipment or material (up to $10,000) to help proactively protect the home before flooding occurs

Some homeowners may be surprised to hear that flooding isn't covered by most homeowners insurance. A string of flood disasters occurred throughout the '40s, '50s and '60s and put tremendous financial strain on private insurers so in response, the federal government created the National Flood Insurance Program (NFIP) to protect homeowners, renters and businesses.

"As floods become more frequent, homeowners need to understand that flood insurance is typically not included in their standard homeowners insurance policy, but there are options available," said Michelle Tennant, vice president of Project Management, Erie Insurance. "Even if you don't live in an area that you think is flood-prone, if it rains or snows, it can flood. That's why it's so important to talk to your agent about your home and your neighborhood, to make sure you have the coverage that's right for you."

Homeowners can talk to their insurance agent about getting flood insurance through NFIP or consider unique options such as the Erie Insurance affordable Extended Water coverage.

To learn more about flood insurance, visit https://www.erieinsurance.com/flood-insurance.

About Erie Insurance

According to A.M. Best Company, Erie Insurance Group, based in Erie, Pennsylvania, is the 11th largest homeowners insurer, 13th largest automobile insurer and 13th largest commercial lines insurer in the United States based on direct premiums written. Founded in 1925, Erie Insurance is a Fortune 500 company and the 19th largest property/casualty insurer in the United States based on total lines net premium written. Rated A+ (Superior) by A.M. Best, ERIE has more than 6 million policies in force and operates in 12 states and the District of Columbia. News releases and more information are available on ERIE's website at www.erieinsurance.com.

 

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SOURCE Erie Insurance Group

FAQ

What is Erie Insurance's new Extended Water coverage?

It's a new insurance option that provides protection against flood damage and sewer backups, addressing a significant gap in standard homeowners insurance.

Why is flood coverage important for homeowners?

Floods are the most frequent natural disaster in the U.S., and standard homeowners insurance typically does not cover flood damage, potentially leading to high financial losses.

What types of damage does the Extended Water coverage include?

It includes damage from flash floods, sewer backups, and offers assistance for flood avoidance measures.

How much can homeowners receive for flood avoidance under the Extended Water policy?

Homeowners can receive up to $10,000 for flood avoidance equipment or materials.

What impact does flooding have on homeowners financially?

Just one inch of water can cause over $25,000 in damages to a home, highlighting the need for appropriate insurance coverage.