It should be noted that additional named insureds do not necessarily have all of the privileges and. obligations of the first named insured such as the obligation to pay premiums and the right to. cancel coverage and receive notice of cancellation.
Generally, physical damage to your building or personal property âdirectlyâ caused by a flood is covered by your. flood insurance policy. For example, damages caused by a sewer backup are covered if the backup is a direct result. of flooding.
Understanding your flood risk and what flood insurance typically protects can help you choose coverage that meets your needs. Here are some facts you should know: 1  The average flood loss is $38,000 2. 2  Nearly 25 percent of all flood insurance claims come from areas not considered high risk 1. 3  There is a waiting period before your flood insurance policy goes into effect, typically 30 days from the application and premium payment date 2.