Flood Insurance

Whether you do or do not live in a flood zone, flood insurance can be an important coverage to help protect your home and assets.

Debunking the three myths of flood insurance.

There are three major myths floating around about flood insurance, If you buy into these myths, you could be taking an unnecessary risk. These myths are: 1) coverage is only needed by people living in flood zones, 2) home insurance covers damage caused by flooding, and 3) government programs take care of flood coverage.

Flooding is a risk no matter where you live.

The first myth is that insurance is only needed by people living in designated flood zones. In reality, flooding is a potential risk everywhere and the damage can be devastating. If you don’t live in a high flood risk area that doesn’t guarantee it can never happen to you. A heavy rain combined with improper grading or a temporarily blocked gutter can cause water to seep into your home. Only an estimated 5% of damage from hurricane Helene is estimated to be covered becuase most of the damage was caused by flood damage. 5% is the current estimate of how many impacted homeowners had flood insurance.

Home insurance doesn’t typically cover flood damage.

Another myth is that home insurance automatically includes flood coverage. It does not.

Government programs offer limited coverages.

The third myth is that government programs have taken care of damages caused by flooding. There is a National Fllood Insurance Program that guarantees the availability of insurance in specific areas. However, NFIP maximum limits are $250,000 for the dwelling and $100,000 for contents. Private flood insurance is available for broader coverage. Keep in mind that f you do not live in a flood zone the cost of a flood policy is likely to be minimal.

The difference between having and not having a flood policy.

For most homeowners, floods are a low-likelihood but high-cost risk. If you are hit by flooding you could lose most of your personal possessions, face major reconstruction work, and/or be left homeless for months while your property is made habitable again.

Do you need flood insurance for your home? Contact us to go over the benefits of obtaining a separate policy to fill in the gaps of your home insurance policy.