Though it may be a surprise to come, homeowners insurance does not cover damage that is caused by floods. So, this being said, is it worth your time to purchase flood insurance? We’re going to hit some key points to assist you in making that decision.
What’s “Technically” a Flood?
This may sound like common sense however, it’s important to understand what a flood is classified as. According to the National Flood Insurance Program, a flood is “A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from an overflow of inland or tidal waters, from unusual and rapid accumulation or runoff of surface waters from any source, or from mudflow.” In simple terms, once water hits the ground and then enters your home it’s considered a flood. Your regular home insurance will not cover this. It will only cover it if the water fell from the sky and damaged your home.
If a tree fell onto your house and then the rain got in and damaged things, your home insurance would cover it. However, if the creek near your house overfills from the rainfall and comes into your home, your home insurance won’t cover it. You would have to rely on flood insurance.
How Do I Know If I Even Need It?
A good place to start is to figure out if your home is located in a risky area for floods. This doesn’t necessarily mean, have you experienced one before, though it could. If you repeatedly get damage from flood water it would be a common-sense move to get flood insurance. However, if you’re moving to a new area and you don’t necessarily know the history of the area or land that you’re moving on.
To find out if you’re in a risky area for floods you can visit Legal Services Corporation. You simply put in your information and it’ll tell you what kind of flood risk your home is in. If you live in a high-risk area then it’s most likely that you’re already required to have flood insurance. This is probably for the best, as it’ll save you tons of money in the long run. If you live in a medium or even low-risk area the idea of getting flood insurance may not seem important. However, you should definitely still consider it. It’s better to have than to not have. Especially when the price of flood damage can be thousands.
Only about 18% of homeowners have flood insurance and out of that 18%, 20% have filed flood insurance claims. That’s 1 out of every 5. And if only 18% of homeowners have flood insurance, and that’s all that’s been claimed, imagine how many people that don’t have flood insurance have suffered from flood damages.
But How Much Does It Cost?
The cost could be the one thing that’s deterring you from making that final decision and getting flood insurance. Especially if you live in a medium to a low risk area. However, the price could not be as bad as you may think it is. You can find a text about cheap flood insurance by ISoldMyHouse.com. If you live in a lower risk area then it’s more probable that the cost of your flood insurance wouldn’t be that much to begin with, which is even more of a reason to go ahead and get it.
Americans, on average, have paid $8.2 million in damages caused by floods annually. Even just an inch of water damages could cost you close to $27,000 in damages and without flood insurance that bills all on you. These are numbers that can ruin a family’s life in a heartbeat. Though the annual total of your flood insurance could reach up to $10,00 in a high rush area, that’s a number much lower than what your single flood damage bill could cost.
We hope that these insightful facts help you make the right decision for you and your family and your property. Overall, we think you’d agree with us that if you can financially afford it, it’s better to be safe than sorry, and you should purchase cheap flood insurance.
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