Basic Guidelines For Purchasing Flood Insurance
Do you need flood insurance? Any home or business can be damaged by water incursions, even those located in a low to moderate flood risk area. If you have concerns about the possibility of flooding due to storm conditions, rising water, fast melting snow, mud, or other situations, getting flood insurance could save you thousands, tens of thousands, or more. Our local agents are here to help homeowners and business owners stay protected from flood damage to a property.
How Does Flood Insurance Work?
Many people have been shocked to discover that their homeowners insurance policy does not cover flood damage. Lenders require those who have a home in a high-risk flood zone to carry flood insurance. If your home is in the moderate to low-risk area, this coverage is likely optional – you make that decision yourself. The cost of coverage varies, depending upon where your home is located. Generally, if your home is in a low to moderate risk area, flood insurance coverage will be extremely affordable. It is worth getting the facts about this coverage, and our friendly local agents can help.
Why You Need Flood Insurance
Your homeowners insurance policy, in most cases, covers only certain weather-related damage, such as a case in which a falling limb damages the roof of your home and rainwater enters the structure, causing further damage. It does not cover water that enters your home by ground. You may believe your home is safe. About 20 percent of flood insurance claims come from lower risk areas – and homeowners who HAD policies in place. The average claim was in the range of $30,000.
Types of Flood Insurance
One of our agents can help you with what type of flood insurance you should have in place. To determine how much flood insurance coverage you need, take these steps:
- Do a full inventory of your possessions and the cost of replacement, including furniture, electronics, appliances, and so on. Coverage can be purchased to cover up to $100,000 to replace your possessions damaged by flood waters.
- Evaluate what it would cost to rebuild your home if severely damaged by flood. Federal flood insurance covers up to $250,000 in repairs. If it would cost more than $250,000 to rebuild your home, it is important that you add what is called “excess coverage,” a private policy to cover the remainder of the cost of rebuilding your home.
- If you rent your home, you can purchase renters flood insurance to cover the cost of replacing your home’s contents.
Private or Federal Flood Insurance?
No matter where you live, assume your home is in a flood zone and that you need coverage. There are a few private companies that may have policies available. Our agency can help you find the right policy, and we always search for the most affordable price. Contact us for more information about flood insurance today!