10 Flood Insurance Facts You Need to Know
Each year, at least 75,000 Americans are now forced out of their homes because of floods. Whether or not this is mankind’s fault, one thing is for certain: flood insurance can protect you.
The following are ten facts about flood insurance that you should be aware of:
Floods can happen anywhere.
People usually think only those who live in flood zones or close to bodies of water, need flood insurance. 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 usually think that flood insurance is only available in areas that are frequently flooded. They need to know that no matter their location, there are many offline and online insurance providers that can offer protection.
Homeowner’s policies do not protect against floods.
As a non-renter who is still paying down a mortgage, you probably have homeowner’s insurance as your lender’s requirement. But because this type of policy will not protect you against floods, you’ll have to buy a separate one.
Flood insurance is among the most affordable types of policies around. 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 often have a month-long waiting period before protection takes effect. Insurers need to protect themselves from those who get coverage when a flood is looming.
Flood insurance works for businesses too.
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 required in certain areas.
If you’re financing a property in a flood-prone zone considered, your lender will surely require you to get flood insurance. 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. The bigger the value, the bigger the premium.
Federal disaster relief isn’t enough – if it’s there.
Finally, the federal government may bring relief during floods, but only after the president has actually declared the incident a federal disaster. The sad thing is, this declaration is only given about 10% of the time, leaving most flood victims to their own devices.
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.