Flood Insurance – Are you among those homeowners who think they don’t need flood insurance? A lot of homeowners feel there is no need for them to buy flood insurance. According to the National Association of Insurance Commissioners, only about 5% to 15% of homeowners have it. But according to the most recent data from FEMA, close to about 99% of counties in the U.S. are struck by flooding.
To worsen the case, a lot of homeowners thought they were already covered for flood damage by their homeowner’s policy. But with a standard homeowners insurance policy, there is no coverage for flood damage. If you don’t have flood insurance, you could face a major financial problem if your home mistakenly gets attacked by a flood. This article will help you know the unknown: that flood insurance is very important for homeowners.
What Is Flood Insurance?
Flood insurance is a type of property insurance that covers any kind of losses or damages that are sustained by water damage through flooding. This insurance policy covers your house and your belongings for any kind of flood damage. A flood is known as a vis major event, and any damage or devastation it causes is uncovered if you do not have supplemental insurance.
How Flood Insurance Works
Flood insurance works just the same way as other insurance policies. So far you make the payment for your insurance premiums, and the company will be responsible for the coverage of any flood damages. Flood insurance policies are offered for all homes and commercial properties.
The standard homeowner’s insurance is responsible for the coverage of all interior water damage because of factors such as storms or burst pipes. Homeowners who live in a flood area are usually those who need to get special insurance.
What Does Flood Insurance Cover?
Flood insurance coverage is divided into two parts, which are the Dwelling and Contents. Dwelling coverage covers your house, while content coverage covers your belongings. It is 100% possible for you to buy a dwelling policy only, a content policy only, or even buy both of them.
Dwelling coverage
Dwelling coverage assists you in paying for the rebuilding or the repair of the building of your house if it has been damaged by flood. In the case of flood damage to your electricity, this coverage will pay to repair or replace the electricity.
Contents coverage
Contents coverage is responsible for the coverage of your belongings, including clothing, furniture, and appliances. It is also known as personal property coverage. In the case that there is a flood in your building and it damages your living room furniture, this coverage will pay to repair or replace that furniture.
The Federal Emergency Management Agency Flood Insurance Basics for Residential Properties
| Coverage | FEMA flood insurance policy |
| Dwelling coverage limit | $250,000 |
| Contents coverage limit | $100,000 |
| Building & contents coverage deductible choices | From $1,000 each (no discount) to $10,000 each (40% discount) |
| Waiting period for coverage after you buy (there are some exceptions) | 30 days |
| Loss of use | None |
What Doesn’t Flood Insurance Cover?
Do you know that flood insurance does not cover all water damage? A flood policy does not cover the following damage:
- Damaged cars.
- Preventable mold.
- Damage caused by burst pipes.
- Personal property that is not in your building including decks, swimming pools, septic systems, patios, and landscaping.
In addition, it does not cover additional living expenses as well, like hotel lodging, if your home is inhabitable.
How to Get Flood Insurance
Are you now interested in flood insurance but don’t know how to get it? this unit will assist you in that. There are two ways that you can get flood insurance, which are:
The National Flood Insurance Program (NFIP)
This is the federal plan from the Federal Emergency Management Agency. A lot of homeowners with flood insurance get it from the National Flood Insurance Program. Your home insurance agent can assist you in processing your application for a policy.
Private personal flood insurance
This is accessible from some companies. They may not have coverage options from the Federal Emergency Management Agency so they are the best choice for those who have large or expensive properties, or who see the Federal Emergency Management Agency choices as insufficient.
Unfortunately, if your building has once had flood damage or you live in a flood area, your choice will be limited to a Federal Emergency Management Agency policy.
Frequently Asked Questions
Does homeowners insurance cover flood damage?
No, a standard home insurance policy doesn’t have coverage for flood damage. A homeowners policy has coverage for water damage from unexpected and accidental problems like a burst water pipe.
How Much Does Flood Insurance Cost?
The average homeowner’s flood insurance premium is roughly $700 a year according to the Federal Emergency Management Agency (FEMA). Premiums for flood insurance differ depending on your risk level for a flood loss, the type of coverage you need, the amount of coverage you choose, and your deductible.
What Should I Do if My Property is Damaged Due to a Flood?
The first step for you to take to start the claim process by file a claim with your insurance agent or company if you have a flood insurance policy. You can see the guidelines for filing a claim after a loss on any flood insurance company website. The insurance company will send a claim agent out to evaluate the damages and assess if they are
