When a natural disaster such as a flood hits home, one of your major concerns is the safety and protection of your property. It’s crucial to understand that simply having homeowners insurance will not suffice as most homeowners’ policies do not cover flood damage.
If you’re unclear whether separate flood insurance makes sense for your living circumstances, here are some considerations to help you make this important decision.
Factors Determining Whether You Need to Purchase Flood Insurance:
According to FloodSmart.gov, an official website of the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP), floods can occur anywhere it rains. In fact, 1 inch of flood water can cost approximately $25,000 in damage.
The location of your home should be a major factor in deciding whether flood insurance is necessary. You may also be legally bound to get flood insurance in some circumstances, depending on who your mortgage lender is and where your home is located.
Is Flood Insurance Mandatory?
If your house is in a high-risk flood zone and you have a mortgage with a federally regulated or insured lender, your lender will require you to carry flood insurance, according to FEMA. A lender, on the other hand, may force you to have flood insurance at any time, even though the company is not legally required to do so, according to FEMA.
Even if you don’t live in a flood zone and your lender doesn’t demand it, you should consider getting flood insurance, especially if you live in a moderate to low-risk flood zone.
What Does a Flood Insurance Plan Typically Cover?
The NFIP offers two types of policies: building coverage for your house and content coverage for your personal possessions.
Building coverage protects the foundation of your home and the electrical and plumbing systems, whereas contents coverage protects your personal belongings, including furniture and electronics. It is critical to note that flood insurance does not often cover finished basements.
Furthermore, if you need to move your belongings due to a flood, your policy should cover the items for up to 45 days to protect against damage. Flood coverage does, however, have some substantial exclusions. Damage to lawns, trees, and fences, as well as any money or deeds left behind, are not covered by flood insurance.
It is also important to note that flood insurance only covers damage caused by weather-related flooding and does not cover damage caused by broken water pipes, dishwashers, washing machines, or a water main break.
A Final Word
A flood insurance coverage can be a good investment depending on where your property is located and what you intend to safeguard. However, you should buy the coverage well before a major weather event.
It is critical to understand that if you wait until the disaster occurs, it will be too late. As severe weather threatens, several insurance companies impose legally obligatory limits. Flood insurance and other disaster policies typically take 30 days to take effect, so knowing what your insurance covers well before a disaster is critical to ensuring you’re protected.
Looking for adequate flood insurance coverage for your home? Contact our insurance experts at the Pierce Insurance Group, and we can help you get affordable flood insurance coverage customized to your requirements.