As storm-battered homeowners and business owners in the North East survey Sandy’s damage, many will be wondering how much the cost of repair will be. It has been estimated that Sandy may have caused as much as $20 billion in losses, but that less than half of these losses were insured.

Infrastructure repairs, for example, will be covered by the government. A majority of damage, however, was caused by flooding, which regular homeowners and renters’ policies do not cover.

Homeowners must buy extra flood insurance coverage for these types of damages to be covered. This means that homeowners impacted by storm surges who don’t have flood insurance will be left funding repairs out of their own pockets.

Businesses may fare a little better than residences. Most commercial insurance policies include protections against floods, but these policies often have a specific “sublimit” that caps how much flood coverage the business owner can receive.

It is estimated that about 62,000 properties in the North East will suffer enough property damage to file an insurance claim due to Sandy.

While Alabama was not directly affected by this storm, it is important to take note and learn from the experiences of those who suffered losses from Sandy. The importance of flood insurance may not become apparent until you find yourself in need of coverage. Do not wait until a natural disaster strikes. Make sure your home is adequately insured today.