3 Benefits Of Having Flood Insurance
Homeowners insurance is great; however, it doesn't cover everything. One of the things that homeowners insurance doesn't cover is flood damage. Flood damage is not one of the named perils that homeowner's insurance covers. In order to be covered for damage caused by a flood, you need to purchase a separate flood insurance policy.
Flood Insurance Is for Everyone
Some people wrongly believe that one can only purchase a flood insurance policy if one lives in a high-risk flood zone. That is not true. Your mortgage lender may require you to purchase flood insurance before they give you a loan if the home is located in a high-risk area. However, you don't have to live in a high-risk area in order to purchase flood insurance. Anyone can purchase flood insurance because the truth is, floodwater doesn't care if you live in a high-risk area or a medium-risk area, it can still damage your property, and without the right insurance, all of those repairs will have to come out of your pocket.
Who Offers Coverage
Flood insurance is a little different than regular insurance. The National Flood Insurance Program (NFIP) is a federal program that provides people with access to flood insurance policies. Flood insurance backed by the NFIP provides residential property owners with a set amount of coverage for building damage and personal property and has different limits for non-residential property damage. The coverage on policies backed by the NFIP may be far less than the worth of your building and personal property, depending on your situation.
Additionally, some private insurance companies also offer flood insurance. However, not all do, so you are going to need to check and see if any private insurance companies in your area offer flood insurance or if you need to purchase a policy through the federal program.
Flood Damage Is Expensive
You want to get flood insurance because flood damage is expensive. Even just a few inches of floodwater can cause thousands of dollars in damage. It can ruin your floors, damage your drywall, and get into the electrical outlets to damage the electrical system. Floodwater can also damage any appliances that touch the ground and ruin your personal belongings. It can be devastating, even if the flood isn't that serious. A serious flood that sends massive water through your home can cause massive damage. Paying for all that damage out of pocket just isn't realistic for most people.
When it comes to floodwater, it is best to get a flood insurance policy, which is usually a reasonably priced policy that will provide you with flood insurance and allow you to weather the storm without going into debt should your home or business be impacted by floodwaters.
Contact an insurance agent near you for more information about flood insurance.
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