Flood Insurance

Information about Flood Insurance

If you own a home, you’ve probably got a homeowner’s insurance policy. And if you’re like most homeowners, you might think your standard policy covers all damage to your home. But the truth is flood damage isn’t included in homeowner’s insurance. You must purchase a separate flood insurance policy if you want coverage that pays to repair flood damage.

Do You Really Need Flood Insurance?

The short answer is no, you’re not required by law to purchase flood insurance. But if you live in a flood zone, having flood insurance is the smart thing to do. You might even live in low or mid risk area, but you still aren’t required to buy flood coverage. But it’s probably in your best interest. The Federal Emergency Management Agency reports that every state has experienced a flood at some point within the past five years.

The Purpose of Coverage

A flood insurance policy reimburses you for lost belongings and personal property following a flood. It pays for flood damages only. If a fire or some other incident happens because of the flood, then insurance will not cover that damage. But as long as the damage is caused by a flood, cover will help repair damages to your home’s foundation and structure or personal possessions such as appliances and furniture. Coverage will also pay to remove debris from your property.

How to Obtain a Policy

You can purchase a policy through the National Flood Insurance Program that’s operated by the Federal government. The maximum amount of coverage is $250,000, while the limit for personal belongings is $100,000. There is also a 30-day waiting period before coverage starts. Although what’s offered is generally sufficient, you can also buy an additional policy from another insurer for extra coverage.

What Does it Cost?

An average flood insurance policy costs around $700 per year. Rates are affected by location, and are generally lower for residents in low or mid-risk areas. The style of your home, the location of your belongings, the number of floors, the age and condition of your home all affect your final cost.