Flood Insurance Explained: What You Need to Know

Is your home at risk of flooding? Considering that flooding is one of the most common natural disasters in the country, the answer is likely.

And no, you don’t need to be in Florida or Louisiana to experience flooding. States in the north dealing with heavy snowmelt, or those prone to high rainfall are also at risk. This even includes desert states like Utah and mountainous states like Colorado.

Because there’s a chance you can experience serious flooding at some point in the future, you should get coverage. But what exactly is flood insurance, and why isn’t it included in most homeowners’ policies? Keep reading for answers to all your flooding-related questions. 

What Is Flood Insurance?

When flooding occurs, your home might fill with water, or even get completely swept away in some instances. It’s also possible that your home floods from the inside, due to faulty plumbing. Water damage coming from inside the home is considered unexpected and may be covered by your homeowner insurance policy.

Flooding and water damage originating outside the home are much more common. As a result of the common occurrences, homeowners insurance policies don’t cover flood damage. In order to be protected, you need a separate policy in place. 

This separate policy will cover your home and its contents in the event of natural flooding.

What Does Flood Insurance Cover?

Flood insurance is used to cover your place, or home, as well as your personal belongings, or that which is inside the home. 

The coverage of your place includes everything built into the home, such as the structure, floors, walls, appliances, and so forth. Your belongings include everything else inside the home.

Flood insurance won’t cover damage resulting from mold or mildew after flooding if the home wasn’t properly cleaned after the incident. It also wouldn’t cover objects not inside or attached to the home, such as a shed or belongings left outside during the flood. 

Determining Flood Risk

Every home is at risk of flooding. But some areas, or zones, have a much higher risk.

You can determine your flood zone online to discover how at-risk your home is. Those in high-risk zones are required by their mortgage lender to purchase flood insurance. 

Flood Insurance Cost

So how much is flood insurance? It depends on where you live and how prone you are to receiving flooding. Higher risk zones come with higher insurance costs.

Even within a state, prices can vary widely. For example, homes on Florida’s coast can expect to pay more than those located inland, since they are at higher risk.

You can also choose a high-deductible plan which can affect the cost of your policy. As a result, you need to receive a flood insurance quote from your local provider to get an idea of the cost. 

Residential properties can receive coverage for up to $250,000 for the building itself and $100,000 for the contents of the home.

Also, be sure to purchase flood insurance ahead of time. There is a waiting period of 30 days after purchasing your policy before your coverage is in effect. So you cannot wait until the last minute before a storm to get your policy.

Contact us today for a custom flood insurance quote, and rest assured knowing your home will be safe.


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