If a hurricane hit your hometown tomorrow or a dam broke and flooded your house, would you know what to do? Do you have flood insurance? Do you know what flood insurance covers? Be prepared for an emergency by learning more about flood insurance and why it is important. Here are 6 great tips to consider when purchasing flood insurance and why it’s a good idea.
1. Water Causes Expensive Damage
A tiny bit of water can cause a tremendous amount of damage. Water can ruin paint on your walls and carpet on your floor. It can damage your electrical wiring, destroy your clothes, and wreck your furniture. If it is not completely ruined in the initial flood, then it can very easily be ruined in the days after when the mold and mildew start to develop.
2. Is Flood Insurance in my Normal Policy?
Your traditional homeowner’s policy probably doesn’t include flood insurance. The same is true for the standard commercial property insurance policy. If you don’t want to get stuck with the enormous financial burden of correcting flood damage, make sure you also have flood insurance.
3. Flood Insurance May Be a Requirement
If you don’t own your property, your bank could require you to carry flood insurance (especially if you live in a high-risk area). An investor doesn’t want to risk losing a property to flooding. Many lenders will make flood insurance a mandatory condition.
4. What Does Flood Insurance Cover?
Flood insurance usually covers up to $250,000 for the home itself and up to $100,000 for the contents inside. The cost of flood insurance is often times much cheaper than paying out of pocket. However, make sure you understand the details of your policy. Flood insurance usually does not cover the following:
- Flood insurance doesn’t cover water coming from inside your home. If your pipes freeze and burst or your sink overflows, flood insurance won’t cover the damage. This type of damage is usually covered in a homeowner’s insurance policy. Check yours to make sure you are protected.
- Flood insurance doesn’t cover damage to swimming pools or landscaping.
- Flood insurance won’t cover the extra living expenses that you incur due to flood damage. Don’t expect your hotel room to be paid for.
- Flood insurance usually doesn’t cover items below ground areas. If you have clothing, computers, televisions, or other furniture in the basement of your home, it may not be protected by your insurance policy.
5. Flood Insurance Going Into Effect
Flood insurance usually takes 30 days to go into effect. That means if you buy insurance today and a flood hits next week, your policy won’t cover the damage. This is why it is important to invest in flood insurance as soon as possible. When you are looking into purchasing flood insurance, make sure you do your research and you are paying the appropriate amount.
6. Be Prepared
You should be prepared for a flood no matter where you live. You may be able to get a lower rate if you live in a low-risk area. Don’t risk forking over thousands of dollars to repair damage to your home. Be prepared with flood insurance. You never want to be in a situation where your home and possessions are ruined without being covered. Affordable flood insurance will grant you peace of mind as you are going about your life, because you will always be prepared when a flood happens.
Thank you for reading! We hope you have learned some tips on purchasing flood insurance.