Ten Must-Know Facts About Flood Insurance
About 75,000 Americans are now affected by floods each year. Whether or not this is mankind’s fault, one thing is for certain: flood insurance can protect you.
Below are ten flood insurance facts that you absolutely have to know:
Floods can occur anywhere.
People usually think only those who live in flood zones or close to bodies of water, need flood insurance. Truth is, as long as you get rain or snow, or your drainage infrastructure is inadequate or not working properly, you’re at risk.
You can buy flood insurance anywhere.
Many people think that just because their area rarely gets flooded, they can’t buy a policy. What they don’t know is that online and offline, there are lots of insurance companies that provide coverage, regardless of coverage.
Your homeowner’s policy does not cover floods.
As a non-renter, you probably have homeowner’s insurance, especially as a requirement of your mortgage lender while you’re still paying off your loan. Remember that this policy will not protect you against floods, so you’ll have to purchase a separate one.
Flood insurance is one of the most reasonably priced policies you’ll find out thee. You can, for example, protect a $60,000 to $70,000 property for only $500 a year.
Discounts are given to low-risk policyholders.
If your area is obviously not prone to floods, you can get an even cheaper insurance policy – picture a couple hundred dollars per year for homeowners and below a hundred for renters!
Like most insurance policies, there will be a waiting period.
Flood policies usually have a waiting period of about 30 days before coverage begins. This is a way for insurers’ to protect themselves from those who might apply for coverage when floods become imminent.
Flood insurers also protect businesses.
If you’re a business owner with expensive assets housed in a non-residential building, flood insurance can offer you protection for these. To keep those assets safe, you could get coverage as much as a million dollars.
Flood insurance is required in certain areas.
If you’re financing a property in a flood-prone zone considered, your lender will surely require you to get flood insurance. Obviously, they need to protect the house in which they have equity.
Flood insurance is highly flexible.
There is no fixed rate when it comes to flood insurance, and you can get a policy based on the value of your assets. Larger value means larger premium.
Federal disaster relief is inadequate, if at all provided.
Lastly, the federal government may provide flood disaster relief but not until the president classifies the situation as a federal disaster. Unfortunately, this declaration happens no more than 10% of the time, which means most of those affected are left on their own.
Floods are a serious threat to life and property, so protection is always worth the money spent on insurance. Not all policies and policy providers are the same, however, so do take time to review your options before making a final choice.