Are you in the process of shopping for insurance, and wondering if you should get flood insurance? This is not part of your standard home insurance policy and can give you some much-needed protection. Here is what you should know about flood insurance.
Why Is Flood Insurance Needed?
Your basic homeowners policy only covers water damage in some situations. This includes if a pipe were to burst in your home due to an accident, such as from freezing in cold temperatures, which causes water to flow into your home. You will not have coverage for other incidents where you have water damage.
That's where flood insurance can help. You'll have protection any time water enters your home from the outside. This means that you are protected from more than just a nearby flood from a lake or river. Flooding can happen at any time, and it's considered flooding as long as water enters your home from things like doors and window wells.
Who Should Purchase Flood Insurance?
Flood insurance may be necessary by your lender if you live in a zone with a federally identified floodplain. This means that your home is more at risk of flooding, and you will be required to have flood protection as long as you have a mortgage.
However, not being in a floodplain doesn't mean you don't need flood insurance. Flooding can happen due to various reasons that are out of your control. For example, if heavy rainfall causes water levels to rise from the street, you'll be protected if that water enters your home. This could be due to a city sewer system that is beyond capacity, or a torrential downpour that happens suddenly and you are unprepared for.
What Happens If Your Home Is Damaged By Flooding And Needs Repair?
Using flood insurance is the same as using your home insurance. You'll need to pay the deductible so that the insurance provider will cover the rest of the repair costs. Your home insurance policy should cover the cost of additional living expenses while your home is being repaired.
When Can You Buy Flood Insurance?
Be aware that you may not be able to buy flood insurance at any time. It is common for flood insurance providers to restrict the purchase of flood insurance in the middle of a hurricane season. You may have to purchase a policy a specific number of days before hurricane season begins to ensure that you have coverage. This prevents people from buying flood insurance right before a storm comes.
Share5 July 2022
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