Flood Insurance – 10 Facts You Have to Know
Every year, no less than 75,000 Americans now flee their homes due to floods. Whether or not this is man-made, one thing is for sure: you can safeguard yourself through flood insurance.
The following are ten facts about flood insurance that you should be aware of:
Floods can happen anywhere.
People often think flood insurance is only needed in flood zones or in areas that are in close proximity to bodies of water. Truth is, as long as you get rain or snow, or your drainage infrastructure is inadequate or not working properly, you’re at risk.
Flood insurance is available everywhere.
People tend to think that flood insurance is only sold in areas that are constantly flooded. What they don’t know is that online and offline, there are lots of insurance companies that provide coverage, regardless of coverage.
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 reasonably priced policies you’ll find out thee. For example, to protect a property with a value of $60,000 to $70,000, you’ll probably only spend $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 usually have a waiting period of about 30 days before coverage begins. Insurers need to protect themselves from those who get coverage when a flood is looming.
Flood insurers also protect businesses.
If you own a business that houses expensive assets in a non-residential building, these can be protected with flood insurance as well. To protect such assets, a flood policy may provide up to a $1 million coverage.
Flood insurance is q requirement in some locations.
If you’re financing a property in a flood-prone zone considered, your lender will surely require you to get flood insurance. The reason is to protect such property in which they have equity.
Flood insurance is highly flexible.
There is no fixed rate when it comes to flood insurance, and you can get a policy based on the value of your assets. Larger value means larger premium.
Federal disaster relief is hardly sufficient – if at all given.
Lastly, the federal government may provide flood disaster relief but not until the president classifies the situation as a federal disaster. Unluckily, such a declaration happens only 10% of the time, so most people affected will have to seek relief on their own.
We all know how devastating floods can be, so buying cover is always worth the cost. Policies and insurers are not all the same, however, so take time to study your options before finally selecting one.