Do You Need Flood Insurance?
Damage due to home flooding can be caused by a variety of conditions including spring thaws, heavy rains, hurricanes and rain accumulation after wildfires. According to the National Flood Insurance Program (NFIP), it only takes a few inches of water to cause major damage to a home and its contents. Additionally, the NFIP states that floods are the nation’s most common and costly natural disaster, and more than 20 percent of flood claims take place outside of a high-risk flood zone. If you live in an area that may be affected by flooding, you will want to invest in flood insurance. If you are under a standard homeowners insurance policy, you are likely not covered for flood damage. To cover your home and its contents for flood damage, you must purchase a separate flood insurance policy. Costs for flood insurance vary based on how much coverage you purchase, what the policy covers, and your property’s flood risk. In some cases, you may be required to purchase flood insurance by the government or your mortgage lender. Most flood insurance policies are offered through the NFIP. However, some policies are sold through private insurance companies. To purchase a NFIP policy, your community must participate in the program. Go here to see if your community participates. Most flood insurance policies do not take effect until 30 days after purchase, so it is smart to consider purchasing coverage before storm season begins. To learn more about the NFIP and why flood insurance is important, click here.