Flood insurance is vital for several reasons, especially when you live in areas prone to such. Flooding is one of the disasters that can bring about potential damage to your home. Hence, understanding flood insurance is vital for homeowners, especially in riverine areas.
Understanding Flood Insurance
What is Flood Insurance?
Flood insurance provides homeowners with an extra layer of protection against flooding that different factors cause. These factors could include persistent rain, melting snow, coastal storm surges, clogged storm drainage systems, or levee dam collapse.
Flood insurance is not the same as the standard hazard coverage found in most home policies. On the other hand, this insurance covers damage from water rising and covering typically dry terrain. Flood insurance is not part of most homeowners’ policies, and you must purchase it individually.
Why Do You Need Flood Insurance?
Flood insurance may be essential to protect your investment for various reasons.
Any structure susceptible to flooding due to the building’s shape and environment must have flood insurance. You must purchase flood insurance if you own property in a federally designated flood zone.
Floods, on the other hand, can be highly unpredictable. Even if you’re not required to purchase it, it’s a good idea to ensure that you’re covered.
What Does Flood Insurance Cover?
Flood insurance is distinct from other types of property insurance. It assists in covering physical damage to your home and belongings from floods and rising water. The specific provisions of your insurance influence the quantity of coverage and reimbursement you receive.
Furthermore, it’s vital to note that homeowners insurance doesn’t cover flood damage.
If you live near the coast and hurricanes are common, you should consider combining your flood and wind insurance policies. Although homeowners insurance typically covers wind damage, this may not be the case if you live in a hurricane-prone area. To ensure enough coverage, we recommend talking with an insurance consultant.
