Every single year 75,000 Americans are forced from their homes due to floods. These flood waters do much more than just flush people out of their houses. They also destroy property, causing irreparable damage and leaving thousands wondering how they’ll piece their lives back together.
While floods can rarely be predicted, fortunately, there is a key way you can protect yourself against them – Flood Insurance.
Flood insurance is a policy type that many people forgo when they’re purchasing their necessities. This is unfortunate given that a quality flood insurance policy can provide key support in the most desperate of times.
To better understand flood insurance and what it can do for you, our team has put together this list of 10 flood insurance facts most people aren’t aware of.
1. You’re Living in a Flood Zone Right Now
A lot of people forgo flood insurance thinking to themselves that only people who live in “flood zones” should carry this insurance type. We have some hard news to share with you… you’re living in a flood zone right now.
People who live near bodies of water are not the only ones who are susceptible to floods. If your area gets rain, snow or has inadequate drainage infrastructure, you’re at risk.
2. You Can Get Insurance for Floods Anywhere
Some people have already convinced themselves of the importance of flood insurance but are disheartened in their thinking that, since floods aren’t common in their area, they can’t get a policy.
This misconception keeps thousands from getting the coverage they need.
The truth is, there are many insurance providers both off and online like Better Flood Insurance that will insure you no matter where you live.
3. Your Homeowner’s Policy Won’t Cover Floods
Homeowner’s insurance is common among non-renters and may even be required if you’re still paying down your mortgage. It’s important to know though that your policy won’t protect you against floods.
That’s why it’s so important to consider getting a separate flood policy.
4. Insurance for Floods are Among the Most Affordable Policies
Insurance for floods is extremely affordable in comparison to other policy types and given the value it can bring to your life. For $500 a year, you could protect in the vicinity of 60 to 70 thousands dollars worth of your property.
That deep value is one of the reasons why insurance for floods continues to grow nationally in popularity.
5. You Can Get Discounts If You’re at Low Risk
If you live in an area that’s not obviously susceptible to floods, you can get a great deal on insurance. We’re talking prices as low as a couple hundred dollars for homeowners and under $100.00 for renters!
This offers an even deeper incentive for people in lower-risk areas to get protected against the still very possible occurrence of floods.
6. There Is a Waiting Period When Acquiring Coverage
Like most insurance coverage, flood policies have about a 30 day waiting period before your protection takes effect. This is to help protect insurers from people who get coverage when floods become imminent.
Because of this waiting window, it’s important that you buy a policy to be proactive in protecting yourself against floods. Reactive policy buying will leave you unprotected if damage occurs within your waiting period.
7. Flood Policies Are Great for Businesses
While most of this article is targeted at homeowners, businesses can also benefit from insurance for floods, possibly to a greater degree.
If you operate a business out of a non-residential building, you may be housing hundreds of thousands of dollars worth of assets. To protect those assets, many flood policies offer up to 1 million dollars worth of coverage!
8. Some Areas Require Flood Insurance
If you live in a high-risk zone for floods and are financing a property, most lending institutions will require a flood policy. This is to protect the home they have equity in from becoming structurally damaged due to abhorrent weather conditions.
Lenders will often have policy providers they can recommend to you that they’ve worked with in the past. You can also purchase insurance from a provider of your choosing so long as the coverage limits meet your lender’s requirements.
9. Insurance for Floods Flex to Your Life
There’s no flat rate when it comes to flood policies. That’s a good thing for most customers.
With insurance for floods, you can buy policies according to the value of the assets you’re looking to protect. That means you’ll pay significantly less in insurance premiums if you need $60,000 worth of coverage versus $500,000.
10. You Can’t Rely on Federal Disaster Relief
When floods destroy communities, federal disaster relief sometimes comes in to help. The seeming security of federal relief often keeps people from buying insurance policies as they think they’ll be financially taken care of by the government.
The harsh reality though is that federal relief will more than likely come nowhere close to piecing your shattered life back together after a serious flood. Furthermore, federal disaster relief only kicks in if the president declares your flood zone situation a federal disaster.
More than 90% of disasters in the United States do not receive this declaration and therefore, the majority of those affected get left to their own devices.
Wrapping Up Things to Know About Flood Policies
Flood insurance, like all insurance types, cover you in the event that the worst comes to pass. People who feel impervious to adversity often go through their lives without this vital insurance coverage only to be left feeling helpless when disaster strikes.
Don’t be one of those people.
Consider your living situation, the damage you’d incur if your home and all of its contents were destroyed during a flood, and get a solid insurance policy that financially covers the full extent of your possible losses.
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