Ten Must-Know Facts About Flood Insurance
About 75,000 Americans are now affected by floods each year. no matter if this is man’s fault or not, you can be sure about one thing: you can protect yourself with flood insurance.
Below are ten flood insurance facts that you absolutely have to know:
No place is 100% safe from floods.
People usually think only those who live in flood zones or close to bodies of water, need flood insurance. In reality, if you get snow or rain, or you have defective or insufficient drainage infrastructure, you’re never safe.
Flood insurance is offered everywhere.
People usually think that flood insurance is only available in areas that are frequently flooded. They need to know that no matter their location, there are many offline and online insurance providers that can offer protection.
Your homeowner’s policy does not cover floods.
Non-renters usually have homeowners insurance, which is often even required if you’re paying mortgage. Note that this policy will not cover floods, so you’ll need a separate one for this.
Flood insurance is one of the most affordable insurance policies available. You can, for example, protect a $60,000 to $70,000 property for only $500 a year.
Low-risk policyholders can receive discounts.
If you own a home in a low-risk area, you could be paying jus a couple hundred dollars a year, or not even a hundred if you’re renting.
Yes, there’s a waiting period just like other insurance policies.
Flood policies often have a month-long waiting period before protection takes effect. Insurers need to protect themselves from those who get coverage when a flood is looming.
Flood insurers also protect businesses.
If you keep expensive assets in a non-residential structure for a business that you own, you can get flood protection for these as well. To keep those assets safe, you could get coverage as much as a million dollars.
In some locations, flood insurance is actually a must.
If you live in a flood zone and you’re financing a property, flood insurance may actually be a requirement by your mortgage provider. Clearly, this is to safeguard the home where they have equity.
Flood insurance is flexible.
There are no fixed rates when it comes to flood policies, and you can purchase coverage, depending on the value of what you’re trying to protect. More value means more 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. The sad thing is, this declaration is only given about 10% of the time, leaving most flood victims to their own devices.
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.