When you experience damage to your home, it is common practice to file a claim with your homeowner’s insurance provider. However, standard homeowner’s insurance policies do not cover damage from flooding.
When deciding whether or not to invest in flood insurance, there are a few questions you should answer.
1. What are your flood risk factors?
If you live in a designated flood zone, you will need flood insurance. If you are not in a designated flood zone, consider what is around your home that may increase your risk of flooding. If your home is near a creek or water source that could overflow, or if your home is at the bottom of a hill, you run a greater risk of your home suffering flood damage from excessive rainwater or melting snow.
2. How much could flood damage cost?
While you may not see the benefit of paying for a policy you may never need to use, consider the alternative. Even an inch of water in a home can cause up to $25,000 in damage.
3. What does flood damage cover?
Depending on the policy you choose, your policy may cover the structure of your home as well as your belongings. This includes damage to the foundation, your appliances, your plumbing and your personal possessions.
Flood insurance is something you should consider when you purchase a new home, at the same time that you are buying a standard homeowner’s policy. Many flood insurance policies do not go into effect for 30 days. Do not wait until you learn of the threat of a massive storm.
