Do You Need Flood Insurance Coverage for Your Home?
When you’re a homeowner, you’re already well aware of the fact that it’s a major responsibility, especially when it comes to your finances. That’s because you have to factor in things like property taxes and maintenance costs, not to mention the premiums that are directly related to your home insurance. So, when you’re talking to your insurance agent and they ask if you want to purchase some flood insurance, there might be a part of you that wants to talk yourself into going without it.
If that’s the case, then this is the article for you because we’re actually about the share five solid reasons for why it’s vitally important that you have flood insurance coverage for your home below:
You can never predict what Mother Nature will do. Although there are some places that tend to be more prone to experiencing floods than others, it might surprise you to know that close to 20 percent of the floods that occur within the United States actually happen in low-risk areas. So, foregoing flood insurance simply because “you don’t foresee a flood happening” is definitely not a good enough reason to go without it.
Homeowners insurance does not cover flood damage. Something that you don’t want to wait until after a flood to hear is “Sorry, your homeowners insurance policy actually doesn’t cover flood damage” and so it’s a good thing that we’re telling you this now. Without the policy, if you do experience a flood, you will have to pay for the repairs out of your own pocket. You should avoid that by any means necessary.
Federal assistance is not “automatic”. Some people feel like they don’t need to get flood insurance because if something were to happen to their home, federal assistance would cover the costs. Actually, that’s only the case when the President of the United States declares that a particular area is a disaster and needs assistance. And even then, the amount that you’ll receive will probably be limited and the time that it could take it to get it could be long. It’s important to have a “back-up plan”.
Flood insurance is affordable. If you’re hesitant to get flood insurance because of the cost, the good news is that it’s actually pretty affordable. For instance, with many companies, you can pay a premium of $354 to receive approximately $150,000 worth of coverage. That equals out to spending less than a dollar a day and to know that your house is prepared for any kind of flood that comes, it’s worth paying a dollar for.
Flood damage is expensive. Whether you work with an Allstate Insurance Agent, a GEICO Agent or an agent that is affiliated with another company, one thing that they can all agree on is the fact that flood damage is expensive. As a matter of fact, according to many reports, just two inches of water can easily equate to over $20,000 of damage. You don’t want to wait until a flood happens to wish you had gotten some flood insurance, so make a point to get some just as soon as you possibly can.