Flood Insurance Information
Broken dams, hurricanes and heavy rains can all lead to extreme floods. These floods can lead to property damage and loss of personal belongings. Even people in a low-risk area can experience devastating floods. It doesn’t hurt to consider flood insurance to protect your home. Here is some basic info to help you make the smartest decision for your home or business.
Flood Insurance Explained
A flood policy pays for repairs or replacements following physical damage your property or belongings receive due to floods. The insurance covers the building, including the foundation. It also covers electrical, plumbing, and heating/cooling systems, carpeting, and paneling. There are a number of other items covered that your insurance agent can tell you about. Flood insurance does not cover mildew or mold damage that was present before the flood. It also doesn’t cover decks or pools or income loss.
People Who Need Flood Insurance
Flood insurance is beneficial because you never know when a flood will occur. But if you live in a high-risk flood area, then you should buy flood coverage. A mortgage lender may even require it for people in high-risk areas. If you’re not in a high-risk zone and your community is part of the National Flood Insurance Program (NFIP), then flood insurance is optional. You should also know that homeowners insurance does not cover flooding.
The cost of flood coverage varies. It can cost anywhere from a few hundred dollars to $10,000 per year. If you live in a high-risk zone, then it is important to purchase your insurance immediately. It can take 30 days before the insurance is active, and you don’t want to get caught without it.
You might think you’ll never need flood insurance. Maybe you won’t. But do you want to take that chance? Speak with your insurance agent about flood insurance.