Proper way to deduct loss due to water damage?

09/25/2009 By admin 1 Comment

I have a new 3-story townhouse. It is my primary residence and it was flooded with 2 feet of water back in Feb due to heavy rains. 11 other units in my neighborhood also flooded. I went the cheapest route I could to repair everything and it cost me approx $4000 but it still isn’t 100% of what it was originally. Maybe 95%. Anyway, I saw in an IRS publication that I can not deduct just my repair costs. I have to have had an appraisal and then take the difference in fair market value as the deduction? I had my home owners insurance do an appraisal of the damages but they did no pay anything to me since I did not have flood insurance. What is the right way to deduct my losses?

This is a casualty loss. Take the value of your home just before the flood, subtract the value of your home just after the flood, now subtract any insurance reimbursements and this is your loss. However, all casualty losses are subject to 10% of AGI (adjusted gross income) which means that if you had a $4k loss and you made more than $40K in the year of loss you are probably not eligible for the deduction. If you made less than $40K see a tax adviser for help, but don’t count on a big tax relief you will be subtracting 10% of AGI from your total loss to calculate your deduction and then the deduction will decrease your INCOME by the remaining amount, not your tax…sorry, it is a lousy deduction.

Filed Under Flood Damage Tagged With flood damage deduction

I want to check a car for water damage, what do I look for?

09/25/2009 By admin 2 Comments

I have the vehicle history report from Carfax and the car was in a flooded area BUT no flood damage was reported. I am looking at a 2005 Toyota Prius with one owner and under 7,000 miles. The car looks great, but I am suspicious because I am in a hurricane affected area and the car has such low milage. It is from one of the big local dealership’s used car lot. It is not Toyota certified as ‘there is no much left on the original warranty that we didn’t certify it, if you want us to it will cost you an aditional $500,’ and I think certifying it adds two years to the warrantee. So, what should I look for to see if there is flood damage??? Thank you for your answers.
You are all giving brilliant answers!!!!!

first use your nose. smell the carpets for mold. look in hidden areas for signs of mud. i foudn the following on the web:
So how can you avoid being taken for a ride when shopping for a used car?

The first thing you should do is check the car’s air filter, looking for signs of a flood car.

if u bought the carfax report then they do offer a guarantee but u will need to read it to see if it would help u. i believe what it says is if the car has a title that says it is not banded and it turns out that it actually has a title that is banded, then they will buy the car back. banded means it has damage listed. i am not sure if it means that someone messed with the title and changed it or what.

“Look for grass and silt, which means it’s a flood car,” said Schnear.

After the hurricanes, many flood cars flooded the used car market. The problem is that after a good soak, wires can corrode, which can be costly.

Next, check the engine oil with a clean rag.

“They may have white or gray material, a lot of carbon on the stick, which means the car may not have had proper care,” said Schnear.

And follow your nose when it comes to checking the transmission: If it smells burnt, say no. That could mean about $2,000 for a transmission repair.

Also, make sure the car’s onboard lights go on.

“An unscrupulous person will remove the light so that you don’t know that there isn’t an airbag to protect you,” said Schnear.

You can also use a mirror to check the springs under the car seat. If they are rusted, that mean’s the car’s been in a flood.

All these things are simple tests anyone can do on their own.

AAA also offers a used car inspection service for members and non-members alike. For around $90 to $95, AAA-approved mechanic will check out the used car to see if it’s worth the money.

Filed Under Flood Damage Tagged With flood damage car

What To Do After A Major House Flood

09/25/2009 By admin 3 Comments

Over the last two years, floods have damaged homes and businesses in all 50 states. The total cost for flood damage in the U.S. now stands at over $1 billion. While enduring a major flood is traumatic, dealing with the aftermath is equally as harrowing. Even minor flooding of a few inches can cause severe damage taking months to repair. A systematic approach can help homeowners wade through the murky aftermath of a flood.

Insurance and Other Assistance

• Insurance. One of the first things you should do after a flood is contact your insurance company to see if your policy covers the damage. Homeowner’s policies do not cover flood damage, so flood insurance is a wise investment, even if you’ve taken measures to prevent flood damage.

Note: Document damage by making a list, taking photos, or using videotape as you begin cleaning your home. Besides needing the records for insurance claims, you can also use the information when applying for disaster assistance and income tax deductions.

• Federal Assistance. Disaster assistance is available in Presidentially-declared disaster zones and can help you in recovery. Flood insurance provides more coverage than federal disaster assistance. Insurance could cover a home a certain home for $250,000, while federal aid would provide only $35,000 toward the same home.

Note: If you receive disaster assistance, you cannot receive it again for 3 years. Should your home incur flood damage again within that time period, you would need flood insurance to cover the damage.

• Local Aid. Voluntary agencies, such as the Red Cross, church groups, civic clubs, and businesses typically provide flood relief. Telephone hotlines with such information are available in federally declared disasters.

Safety First

As owners enter their homes after a flood, safety is of the utmost importance. Avoid entering a house until local officials have declared it safe. Be cautious when entering, and don’t go in if water remains around the building.

• Utilities. Report broken power lines and other damaged utilities to the appropriate authorities. Turn off all utilities and have them inspected and restored safely by a professional. Avoid any downed power lines, particularly those in water. See if your sewage and waterlines are damaged and if necessary, have them serviced as soon as possible as they can pose major health threats. Ensure that your water is potable before drinking.

• Fire Hazards. In case of a gas leak, use battery-powered lanterns or flashlights when examining your home and avoid smoking inside. Consult the utility company about using electrical equipment, including power generators.

• Structural Damage. To ensure your home is not in danger of collapsing, inspect the foundation for damage and check the integrity of walls, floors, doors, staircases, and windows.

• Chemicals. Be aware of potential chemical hazards around your property, such as leaking propane tanks or car batteries.

Clean Up

Home owners should clean and disinfect every surface in their home, including walls and hard-surfaced floors, with either a store-bought product or a homemade solution. A disinfectant solution can be made with 1/4 cup of chlorine bleach and a gallon of water. Open windows in the house for ventilation as you clean.

• Dry It Out. To avoid damage to the foundation, gradually pump water from flooded basements (2-3 feet per day). For items that cannot be washed, such as mattresses and furniture, if they are salvageable air dry them outside and then spray them with a disinfectant. Otherwise, throw them out.

• Food Areas. Throw away food that has been in contact with water (some canned items can be saved) and disinfect surfaces that contact food, such as counters, shelves, tables, utensils, serving ware, and refrigerators.

• Kids areas. Carefully clean areas where your children play.

• Clothes. Wash linens and clothing in hot water or dry clean them.

• Carpet. Steam clean carpeting if possible.

• Bathrooms. If sewage has come into the house, wear rubber boots and waterproof gloves to clean up.

• Throw It Out. Remove and discard items cannot be disinfected. Likely items include cloth, upholstered furniture, and drywall. Drywall acts like a sponge and will likely grow moldy, creating a permanent hazard unless removed.

• Freezer Approach. To protect from mildew, photographs, books, and important papers can be frozen and cleaned later. Dry them carefully, wash off mud and debris, place in plastic bags, and then store the items in a frost-free freezer until you have time to clean them.

An Ounce of Prevention…

If your house has flooded once, it can flood again, so take measures to prevent or mitigate flood damage in the future. Be prepared for the next time by reconstructing your home with flood proof materials and using techniques that will minimize damage. Have food stores and an evacuation plan and look into purchasing flood insurance. If your flooding was caused by leaking pipes, appliances, or water seeping into the basement, water alarms and leak detectors are also available, which will alert you to the presence of rising water in your home.

Rob Zawrotny

http://www.articlesbase.com/advertising-articles/what-to-do-after-a-major-house-flood-59230.html

Filed Under Flood Damage Tagged With flooding, home water damage

Flood Conrol and Its Impact On You

09/25/2009 By admin 3 Comments

I. INTRODUCTION

Optimal utilization of the water resources through appropriate conservation and management measures assumes critical importance in sustaining the life support systems. The pattern of demand for water is undergoing gradual but continuous changes towards increasing pressure for drinking and other household and commercial needs relative to the demand for irrigation as the emerging trend is towards less water demanding perennial crops in lieu of seasonal crops. Progress in this direction is quite limited and flood control works continue to be on conventional lines like strengthening the riverbanks, construction of retaining walls, embankments,

There was no attempt in the past for assessing the flood incidences, their intensity, pattern of occurrence and vulnerability of different regions. Flood proofing is feasible only after identifying the root cause of floods from its origin. It is therefore proposed to organize a basin wise study in major river systems that are vulnerable to flood, to find out the causes of flood and its intensity

II OBJECTIVE:

It is the purpose of this paper to promote the public health, safety, and general welfare, and to minimize public and private losses due to flood conditions in specific areas by provisions designed:

A. To protect human life and health;

B. To minimize expenditure of public money for costly flood control projects;

C. To minimize the need for rescue and relief efforts associated with flooding and generally undertaken at the expense of the general public;

D. To minimize prolonged business interruptions;

E. To minimize damage to public facilities and utilities such as water and gas mains, electric, telephone and sewer lines, streets and bridges located in areas of special flood hazard;

F. To help maintain a stable tax base by providing for the second use and development of areas of special flood hazard so as to minimize future flood blight areas;

G. To insure that potential buyers are notified that property is in an area of special flood hazard;

H. To insure that those who occupy the areas of special flood hazard assume responsibility for their actions.

III CAUSES OF FLOODS:

When it rains or snows, some of the water is retained by the soil, some is absorbed by vegetation, some evaporates, and the remainder, which reaches stream channels, is called runoff. Floods occur when soil and vegetation cannot absorb all the water; water then runs off the land in quantities that cannot be carried in stream channels or retained in natural ponds and constructed reservoirs. About 30 percent of all precipitation is runoff, and melting snow masses may increase this amount. Periodic floods occur naturally on many rivers, forming an area known as the flood plain. These river floods often result from heavy rain, sometimes combined with melting snow, which causes the rivers to overflow their banks; a flood that rises and falls rapidly with little or no advance warning is called a flash flood. Flash floods usually result from intense rainfall over a relatively small area. Coastal areas are occasionally flooded by unusually high tides induced by severe winds over ocean surfaces, or by tsunamis caused by undersea earthquakes These flood losses are caused by the cumulative effect of obstructions in areas of special flood hazards, which increase flood heights and velocities, and when inadequately anchored, damage uses in other areas. Uses that are inadequately flood proofed, elevated or otherwise protected from flood damage also contribute to the flood loss

IV EFFECTS OF FLOOD:

Floods not only damage property and endanger the lives of humans and animals, but have other effects as well. Rapid runoff causes soil erosion as well as sediment deposition problems downstream. Spawning grounds for fish and other wildlife habitat are often destroyed. High-velocity currents increase flood damage; prolonged high floods delay traffic and interfere with drainage and economic use of lands. Bridge abutments, bank lines, sewer outfalls, and other structures within flood ways are damaged, and navigation and hydroelectric power are often impaired. Financial losses due to floods are commonly millions of dollars each year. The flood hazard areas of the city are subject to periodic inundation which results in loss of life and property, health and safety hazards, disruption of commerce and governmental services, extraordinary public expenditures for flood protection and relief, and impairment of the tax base, all of which adversely affect the public health, safety, and general welfare.When it rains in, flood control channels, rivers, and washes quickly fill up with fast moving water, and this can create a potentially life-threatening danger to anyone who gets caught or swept away.

“A foot or two of water can cost our life! Nearly half of all flash flood fatalities are automobile related. Two feet of water will carry away most automobiles. Also avoid walking also through flood waters, even six inches of water can sweep off our feet.”

A flash flood is a torrent of water rushing through normally dry or low-flow creeks, streams, washes, ravines, culverts, or over lower lying ground. In desert areas, a raging torrent of water may move off the mountains for miles into relatively flat terrain. The violent rushing of water collects debris and mud as it moves and becomes destructive to everything in its path.

V CONTROL OF FLOODS

The basic methods of flood control have been practiced since ancient times. These methods include reforestation and the construction of levees, dams, reservoirs, and flood ways (artificial channels that divert floodwater).

1. An effective method of controlling flood waters is to construct coordinated groups of dams and reservoirs on the headwaters of the streams that lead into the main rivers, so that water can be stored during periods of heavy runoff and released gradually during dry seasons

2. People have created a flood problem by cutting down trees and digging up the vegetable cover of the soil, thus increasing soil erosion. Flood control in these areas has been directed to restoring vegetation and instituting efficient methods of soil management, such as crop rotation and contour plowing.

3. Another method of flood control is the construction of floodways on the lower reaches of rivers to divert floodwaters. The rivers are widened at certain points and allowed to overflow. Inundation of certain confined areas prevents the flooding of other areas.

4. In the past, agricultural lands were regarded as only having the role of food production, but are now considered to have several functions, such as flood protection, fostering of water resources, and so on.

5. Flood Control Facilities With regard to integrated flood control projects, emphasis has been placed on embankment construction in coordination with the reengineering of the courses of rivers, dredging as well as the setting up of pumping stations located at the main exits of the drainage pipes behind embankments, so as to pump off rainwater that cannot be drained off by gravitational force within the city

6. Over bank Flood The primary purpose of over bank flood control of control is used primarily to protect property adjacent to the stream from frequent flooding.

7. Flood Barriers variable height flood barriers provide total flood protection to doors and windows, whilst also preserving the visual integrity of the building. Flood Barriers are the ideal flood defense for homes, commercial premises and retail outlets. Recommended uses are in  House doors and windows · Driveways and garages · Business premises · Shops and Stores

8. Flood Gates Designed to provide maximum protection from impact damage and violent water, our Flood Gates allow us to leave our property with total confidence that our products, plant and possessions are safe from all but the most overwhelming flood conditions. Recommended Uses Commercial premises and industrial units likely to be unattended when flooding occurs. Isolated properties liable to be cutoff and evacuated during floods

.

Flood Gates can be supplied to protect up to a flood height of 1.8 meters and to an installed width of up to 6 meters.

9. Removable Dams Removable Dam system has been engineered to provide similar levels of protection to permanent flood defense schemes, but with the distinct advantage of being removable when not required – thus preserving the integrity of the landscape and architecture. The system can be used between existing structures but has been primarily designed to be completely self-supporting over almost any distance and may be specified for virtually any height of floodwater. Recommended Uses: – Roadways, subways, embankment promenades, industrial complexes, shopping precincts

11.Flood-Proofing Services All services of flood-proofed buildings – electrical, heating, road, and sewer – must also be protected from flood damage. Special valves can protect sewers and water pipes; telephone equipment and electrical transformers must be located above design flood levels. Auxiliary generators may have to be installed, and hydro lines, access roads and bridges to buildings must be protected. Buried hydro lines and gas mains must be located and designed to resist damage from possible flood erosion or uplift forces.

Basic Flood-Proofing Methods

1. Buildings on Piers, Piles, Columns or Bearing Walls Elevating structures above design flood level on some kind of support provide reliable protection against flood damage. This method uses land efficiently, does not raise the flood level, and has minimal adverse effects on flood flows.

2. Making Lower Levels of Building Watertight (Closure and Seal Method) Flood-proofing the lower levels of buildings by sealing them against water penetration requires that they be made strong enough to withstand cracking from the lateral and uplift pressure of the water.

3. Surrounding Buildings with Flood-Proof Walls or Berms: This method involves generally the same considerations as those required in the design of small dams. It has several disadvantages such as increasing the possibility of catastrophic failure and is not practicable for individual buildings in dense urban areas.

4.Floodproofinr Our Home

We can take an active role in protecting our property from flood damage both prior to and during flood. Prevention Methods:

· We can divert water from our property by regarding or constructing an earthen berm. Both of these may require a permit so check with the County Planning and Development Department first.

· The construction of swales (shallow ditch) and retention areas (small shallow depressions) are other effective methods of preventing flooding. Again, We will need to check to see if a permit is required.

· If roof drainage is a problem, gutters can help direct runoff.

· Another way of protecting a building from flooding is by raising the building. This can be expensive, but may be very cost effective.

· During a Flood

· Fasten plastic sheeting or other waterproof paper across windows and doors

· if evacuation appears necessary and only if time permits:

· Turn off the electricity at the main power switch and turn off the gas at the main valve.

· Move valuable papers and personal items to upper floors or higher elevations.

· Move outdoor possessions inside, anchor them down, or tie them together so they don’t get carried away.

· Keep a battery-powered radio handy and tuned in to a local emergency broadcast station: follow all emergency instructions.

· Move to high ground or an established emergency shelter. If it is safe to evacuate by car, take nonperishable foods, blankets, a flashlight, dry clothing, and any special medications with We. Be aware that many stores and gas stations will be closed since pumps and registers may not function if electricity has been cut off.

· Do not drive where water is over the road: part of the road may be washed out or be much deeper than it looks.

· When we return to our home and find that it has been flooded, check first for structural damage. Then air out the home in case of possible gas leaks. Do not turn on gas or electricity until utility representatives have checked them for gas leaks and short circuits.

VI. METHODS OF REDUCING FLOOD LOSSES:

In order to accomplish its purposes, this includes methods and provisions for:

(1) Restricting or prohibiting uses which are dangerous to health, safety, and property due to water or erosion hazards, or which result in damaging increases in erosion or in flood heights or velocities;

(2) Requiring that uses vulnerable to floods, including facilities, which serve such uses, be protected against flood damage at the time of initial construction;

(3) Controlling the alteration of natural floodplains, stream channels, and natural protective barriers, which help accommodate or channel flood waters;

(4) Controlling filling, grading, dredging, and other development which may increase flood damage; and

(5) Preventing or regulating the construction of flood barriers which will unnaturally divert floodwaters or may increase flood hazards in other areas

VII CONCLUSION:

The problem of flood control has assumed national importance because of the increasing frequency and intensity of floods in all of the great river valleys as a result of deforestation. Many aspects of flood control can be handled by individual states or groups of states acting on a regional basis Encourage the mapping of the flood ways to develop more effective flood control programs Maintain and re-establish forest cover ,to improve the capacity of the ground to absorb heavy rainfall. Ensure that purchasers of homes and other real property are fully informed of hazards from floods. Continue proper soil conservation measures to complement the existing systems. Improve and upgrade existing flood control measures as necessary.

S.Hema Bindu

http://www.articlesbase.com/college-and-university-articles/an-article-on-flood-control-138104.html

Filed Under Flood Damage Tagged With flood control

Is Your Homeowner’s Insurance Giving You Protection from Flood Damage or Losses?

09/25/2009 By admin Leave a Comment

The first thing that surprises many people about flood insurance is that everybody is actually considered to live in a flood zone according to FEMA (Federal Emergency Management Agency) – its simply a question of whether you are at low, moderate or high risk of flooding. Obviously some people, depending on where they live, are at greater risk than others.

And another surprise is that even people who live in areas not particularly prone to floods may be at risk from flooding – around 30% of claims for flood damage come from areas that are considered low to moderate risk. And during a 30 year mortgage, a typical home has about a 25% chance of being damaged by a flood.

Many homeowners are also surprised to learn that flood insurance is not included under their regular homeowner’s insurance policy or renter’s policy. And a surprising statistic is that in general, you are 30 times more likely to lose your home to a flood than a fire. Every year around $2.4 billion is paid out in insurance claims for flood damage or losses.

A flood can mean any kind of water damage or damage from mud, poor drainage or seepage. Much flooding is caused by winter storms, melting snow and hurricanes – things which many people tend to overlook. Just an inch of water can potentially cause costly property damage and a car can be swept away in just two feet of water.

Because most policies don’t cover flood damage, Congress established the National Flood Insurance Program (NFIP) in 1968. This program allows people who may be at risk from flooding to purchase adequate insurance – even after the flood or water damage has occurred.

Several companies offer flood insurance – always make sure the company you choose is backed by the NFIP. This ensures you will be adequately protected in the case of flood damage. This is one type of insurance you shouldn’t take out at the last minute – one disadvantage with the program is that after you have taken out flood insurance, there is a 30 day waiting period before any coverage takes effect.

As with other products and services, always shop around when comparing policies. The internet has made it just as easy to compare prices on line as it is to call around the various companies. Around 5 million people in the United States have some form of flood insurance and the average monthly premium is around $350 per year.

Take into account the amount of coverage you will receive in the event of a flood, as well as the amount of the monthly premiums. Make sure that there are no exclusions to the policy that may affect you. And make sure your insurance company can easily be contacted if and when you need them.

Most flood insurance policies will cover the costs of replacing or repairing both property and goods in the event of any damage. Contents can include furniture, clothes, rugs and carpets and other possessions – even the food in your freezer.

Contents and buildings both generally have separate deductibles (the amount you must pay before the insurance covers the costs) – so if both your property and contents are damaged by flooding, you will have to pay both deductibles.

So even though you may not obviously live in a high risk flood area, consider taking out flood insurance. Like most insurance, you hope to never use it – but it’s comforting to know it is there.

Casey Yew

http://www.articlesbase.com/non-fiction-articles/is-your-homeowners-insurance-giving-you-protection-from-flood-damage-or-losses-78770.html

Filed Under Flood Damage Tagged With flood protection, homeowners insurance