News from Crain’s Detroit Business:

Monday afternoon’s storms have turned into a frustrating lesson in insurance rules for many business owners and homeowners.

Because the water damage affecting most properties was brought by overwhelmed sewer systems, rather than ground water saturation, flood insurance typically isn’t going to provide any protection.

According to Lori Conarton, director of communications for the Insurance Institute of Michigan, flood insurance generally only covers water that seeps down through a property from the top floors, or ground water saturating into a property. While flood insurance can be purchased from private insurance companies, most policies are bought from the federally funded National Insurance Flood Program. The process for signing up for coverage includes a 30-day waiting period to deter clients from buying insurance as the flood is happening.

However, for properties in the Detroit storms, water typically flowed through streets and sewers, flooding streets, basements and even some ground-floor structures. To make a claim……….. continues on Crain’s Detroit Business.

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