Ten Must-Know Facts About Flood Insurance
Every year, no less than 75,000 Americans now flee their homes due to floods. Whether or not this is mankind’s fault, one thing is for certain: flood insurance can protect you.
Here are 10 facts about flood insurance that you need to know:
No place is 100% safe from floods.
Many people think flood insurance is only for people living in “flood zones” or near bodies of water. 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 tend to think that flood insurance is only sold in areas that are constantly flooded. What they’re unaware of is that no matter where they live, there are many insurers, both online and offline, that are willing to protect them.
Your homeowner’s policy does not cover floods.
As a non-renter, you probably have homeowner’s insurance, especially as a requirement of your mortgage lender while you’re still paying off your loan. But because this type of policy will not protect you against floods, you’ll have to buy a separate one.
Flood insurance is one of the most reasonably priced policies you’ll find out thee. You can, for example, protect a $60,000 to $70,000 property for only $500 a year.
Low-risk policyholders can receive discounts.
If your area is obviously not prone to floods, you can get an even cheaper insurance policy – picture a couple hundred dollars per year for homeowners and below a hundred for renters!
Like most insurance policies, there will be a waiting period.
Flood policies often have a month-long waiting period before protection takes effect. This is how insurers protect their interests against those who want coverage when a flood is close at hand.
Businesses can get flood insurance too.
If you’re a business owner with expensive assets housed in a non-residential building, flood insurance can offer you protection for these. To keep those assets safe, you could get coverage as much as a million dollars.
Flood insurance is q requirement in some locations.
If you live in a flood-prone area in a financed a property, you may have to purchase flood insurance as a requirement of your lender. Clearly, this is to safeguard the home where they have equity.
Flood insurance is 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 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. Unfortunately, this declaration happens no more than 10% of the time, which means most of those affected are left on their own.
Floods are a serious threat to life and property, so protection is always worth the money spent on insurance. Policies and insurers are not all the same, however, so take time to study your options before finally selecting one.