The benefits of flood insurance and who needs to have it
Flood insurance is a separate type of policy that should be purchased by anyone who lives in an area that has a high risk of flooding because most, if not all, standard home insurance policies do not cover two things: earthquakes and floods. And for people who live in areas of high to moderate flood risk, there is a 26% chance that your home will experience some flood damage in the thirty-year period you have your mortgage. Even a few inches of water running through your home can cause massive damage.
Even a few inches of water running through your home can cause massive damage. Think about it. Floodwater goes to contain sewage, pollution, and chemical waste like oil and gas, and now it’s in your living room, kitchen, bathroom, and bedroom, leaving a lasting imprint on your carpets and walls. Even in the best of times, your carpets and flooring will need to be ripped out and replaced, and if your walls have been damaged, you’ll likely need to remove the drywall, insulation, and baseboards and replace those, too, to protect against mold and mildew. the rot.
Can you afford to replace the contents of your home and make the massive repairs that will be required to make your home livable and marketable again without the help of insurance? If we learned anything from Hurricane Katrina, it’s that home repairs are extensive and expensive, and that most homes that were hit by Hurricane Katrina are still damaged and abandoned all these years later, as the former owners couldn’t make the repairs. expensive repairs to make homes safe again. .
Even if you feel safe from flooding because you live in an area that is not considered a flood zone, you should keep in mind that flooding can happen anywhere and at any time. All states have flood risk. Flooding can start from something other than hurricanes or rivers rising over the banks. Winter storms, snow melt, and even new construction alter water runoff patterns in an area, causing flooding where it is least expected.
The cost of flood insurance varies based on a variety of variables, including the age of the building to be insured, the number of floors, the building’s occupancy, the location of the building’s contents, and where it is in a flood zone. Other factors that affect premiums include how much coverage you want and whether you want to cover the building or the contents of the building or both.
Talk to your agent about flood insurance before you need it because when you really need it and don’t have it, it’s too late.