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Flood Insurance

Owning a home that could potentially be damaged by rising floodwaters is reason enough to purchase flood insurance. This insurance is a kind of coverage that pays for damage done to your home and its surrounding property in the event of a flood. It is extra coverage that goes above and beyond the standard homeowners policy. Homeowners should be aware that they do not have this insurance unless they specifically purchase it as a standalone product or as an addition to an existing homeowners policy.

Flood coverage is a good idea for any homeowner living in an area where serious flooding occurs more than once every few years. It is mandatory in certain areas in the United States classified as being at high risk for flood. Take the coastal areas of Florida, for example. Banks and mortgage lenders require homeowners to carry flood insurance until mortgages are paid off, though it’s a good idea to keep coverage in place even after a house is paid for. Why? Because homeowners living in these flood prone areas are likely to be ineligible for federal assistance otherwise.

Insurance coverage for floods works just like a standard homeowners policy. The homeowner chooses how much coverage he wants for both the structure and its contents; annual premiums are calculated accordingly. Any flood event that damages the home owner’s property can be claimed according the terms of the policy. A successful claim results in a check being written by the insurance company to cover property loss and repair costs.

Anyone who lives in an area designated as a floodplain should have insurance. Floodwaters can be devastating even at just a couple of inches. Once flood damage does occur, the costs associated with repairing it can be insurmountable without help from insurance. If you own a home anywhere near a body of water, it is highly recommended that you have adequate insurance in place.