Do You Actually Require Flood Insurance?

An average of $2.4 billion is paid out against flood insurance every year. A lot of people with home insurance do not recognize that flood insurance is not covered in their homeowner’s policy. And yes, lot of us who don’t live on or close to the coast or water don’t feel we require it. But how do you actually settle on whether you need flood insurance or not?

Why you do need Flood Insurance?

Flood Insurance

You will most likely need flood insurance if you live in a post code area that is vulnerable to flooding, although if your property has never actually been flooded. Flood insurance is compulsory for those people residing in areas that are located in so-called high risk flood areas. Amazingly, around 25% of all flood claims are for policies for homes located in low to moderate risk regions.

Insurers work on post codes areas and if the environment agency has observed an area as flood risk then the insurer will apply extra danger to the properties there because the claims are probably to be either more frequent or more pricey or both.

It is no good to ignore or hide from obvious signs of danger because the insurer will know your postcode and apply extra charges to your standard home insurance so as to cover the risk.

Even if you don’t evidently live in an area prone to high tides or hurricanes, bear in mind that floods can be caused by other things. All melting snow, winter storms, mudflows or erosion and subsidence can cause flooding. And a flash flood can take place when there is an excess of rainfall in a short point in time. Reflect on flood insurance if you reside in a growing area- often, extreme new land development can produce the possibility for flooding. Usually, much new construction occurs on natural runoff paths – if these are built upon, the close by land can be more inclined to flooding.

You are in fact more likely to undergo flood damage compared to fire damage- during the course of a typical 30 years mortgage; your home has a 25% chance of flood damage, as different to a 9% possibility of fire damage. It is projected that just an inch of water is sufficient to cause widespread property damage and most cars can be simply swept away in two feet of water.

Think that rising temperatures may cause the ocean level to go up and unpredictable patterns to appear. As per many climatologists, this may bring about storms of greater intensity around the world for years to come.

It is only you who can make a decision whether to buy flood insurance or not. In case you stay in a flood prone region, you might desire to request a quote online or by phone. An insurance quote is free, so if you ask, you lose nothing. You may be agreeably astonished by the deals you find.

When shopping for flood insurance, think about the amount of monthly premiums together with the amount of coverage you will obtain in the event of flood. Peculiar flood insurance will cover the expenses of substituting or repairing property as well as goods damaged by a flood. In this particular case, contents include everything right from furniture and carpets to food in your freezer.

What Does Flood Insurance Cover?

According to a definition given by the National Flood Insurance Program, flood is a partial or complete inundation of normally dry land due to excess of inland waters, quick accumulation of surface waters from any mud or source flows. This type of insurance covers the following:

  • Debris removal.
  • Wood paneling, cabinetry and furniture damage.
  • Unavoidable mildew or mold damage as a result of flooding.
  • Carpet damage and repair.
  • All damage to detached garages.
  • Damage to or resulting from electrical and plumbing systems after a flood.
  • Any structural damage due to flooding.
  • Damage to personal items such as jewelry and electronics.
  • Damage to appliances, heating and cooling equipment.

What Doesn’t Flood Insurance Cover?

Even a complete flood insurance policy may not offer complete coverage for each and every monetary loss caused due to flooding.

The following common requests are generally rejected by insurance providers:

  • Mold and mildew damage due to flood that could have been avoided by the property owner.
  • Financial losses caused by loss of property use, for instance, a flooded home office.
  • Land property outside the insured building, e.g. septic systems, swimming pools, patios, gardens and trees.

Flood insurance- though often considered needless – is well worth the cost for the peace of mind it offers. It’s something every homeowner must consider.

Talk about all the pros and cons of flood insurance with your agent before making your final conclusion. In the end, it is up to you to get flood insurance.

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