Flood Insurance

Flood insurance is important to have in case of a natural disaster, especially if you live in or near a potential flood zone.

 

Flood Insurance Tips

Here are some tips for establishing a new Flood insurance policy:

  • Choose the right insurer. Not all insurers offer Flood insurance policies, so be sure to research your options.
  • Determine your risk level. The higher your risk level, the more expensive your policy will be.
  • Get a quote. Quotes are free, so it doesn’t hurt to get one before you decide on a policy.
  • Read the fine print. Make sure you understand all of the terms and conditions of the policy before you sign up.
  • Stay informed. Keep an eye on weather reports and be prepared for a potential flood.

It’s also important to remember that many carriers build in a delay before your coverage begins, so you can’t afford to wait until a flood strikes before choosing your flood insurance policy.

We Can Help You

We can help you enjoy the peace of mind that comes with a strong flood protection policy, and we can work to make sure your rates are as low as possible. For a free consultation, give us a call or click below.

Flood insurance is a separate policy that must be purchased on top of a good homeowners insurance policy for a homeowner to be fully protected against the wrath of natural disasters.

The flood policy will cover damages caused by flooding from excessive rains, hurricanes, or even earthquakes. It does not matter what caused the flood. It is the flooding itself that is covered. This is a critical distinction.

Many homeowners are under the false impression that if they have a policy that covers the destruction from, for instance, earthquakes, any flooding that results from earthquakes will be covered by their homeowners or earthquake policy. This is untrue. In that case, the direct damages from the earthquake would be covered. The damage from the flood, even though it occurred as a result of the earthquake, would not be covered.

Why don’t insurance companies cover the miserable mayhem caused by flooding in homeowners insurance policies? Simple economics. They found that most people who wanted to insure against flooding resided in high-risk areas. This means that the risk pool is not large enough to absorb the insurance companies’ losses due to claims, making flooding mayhem to their profitability.

Because of the devastating losses that occur due to flooding, the U.S. government established the National Flood Insurance Program “NFIP” in 1961. This program makes insurance for flooding available to all homeowners that live in a community that participates in NFIP. Most do. Homeowners can now buy this important insurance through a number of carriers.

Who needs this insurance? Anyone in a flood-prone zone should not go a day without this insurance. But even those that live outside the flood-prone areas should remember: flooding occurs everywhere, mayhem has no address.