In recent years there have been a lot of sporadic heavy thunderstorms and flash floods. Even regions that aren’t flood-prone are starting to feel the pinch of floods.
In the wake of such eminent natural catastrophes, most homeowners gear up to protect their homes. While homeowner’s insurance is one way of doing so, have you ever considered flood insurance?
Homeowners’ insurance steps in to cover for damages and repairs after a flood. You may be surprised at the extent of the damage a flood can cause. What’s more surprising is that your policy may not cover such property loss and damage.
In this piece, we’ll look at seven reasons why it’s always a good idea to have flood insurance. Hopefully, it will answer “is flood insurance worth it?”
What is Flood Insurance?
Flood insurance is property insurance that covers damages and losses sustained during a flood. Flood, in this case, is not limited to excess runoff from a heavy downpour.
Flood insurance covers flooding from melting snow, dam failure, or even blocked storm drainage.
Flood insurance is popular in flood-prone areas like Florida. Though smart homeowners still get flood insurance to prepare for the unexpected even if they don’t live in flood-prone areas.
Remember, the cost of damage for just two inches of floodwater in your home is quite a lot.
Is Flood Insurance Worth It? Here are Seven Reasons Why It Is
If you’re on the fence on whether to get flood insurance, then we’re here to convince you that the best decision is to opt for the flood insurance.
But not just any flood insurance, good flood insurance that will cover most of your property loss and any subsequent repairs.
Here are seven reasons why flood insurance is crucial for any home.
1. Your Homeowner’s Insurance May Not Cover Flood Damage
Most homeowner insurance policies only cover water that falls from the sky like rain. Once the water reaches the ground and flows the insurance providers consider this a flood
Your home water insurance will cover when rain damages your ceilings and roof. Similarly, they’ll provide cover if a storm fells a tree that then damages your home.
That’s pretty much what homeowners insurance covers in terms of rain or other precipitation. Any damage caused by flowing water doesn’t fit the rain criteria and therefore not qualified for coverage by the homeowner’s insurance.
2. We All Live in a Flood Zone
You don’t have to live in Florida to experience flooding. Even though it may be low, everyone’s home is at risk of flooding.
You can know the flood risk of your home by visiting the FEMA flood maps center. From there, you will be able to gauge the likelihood of your home being affected by flooding.
You don’t need heavy rains or coastal wave breaches for a flood. Remember, blocked storm drains are enough to cause significant damage to your household. Let’s not even get started about dam failure; in fact, there have been a couple of dam failure incidences in the country.
Also, flood risk is constantly updated because it isn’t static. So you may be at low flood risk this year but at high flood risk the next.
3. Outside Flood-Prone Areas Flood Insurance Is inexpensive
If you live outside flood-prone areas, flood insurance won’t cost as much as you think. So don’t worry about digging deep in your pockets for flood insurance.
Low premiums are a good reason why every homeowner should have flood insurance. It’s a small price to pay for all the property losses and damages the flood insurance will cover. All you need to do is ask for a flood insurance quote; you might be surprised how affordable it is.
4. Floods are Pretty Disastrous
Disastrous is an understatement when you consider the extent of damage caused by floods on your property. The best words to describe these floods would be catastrophic.
The United States loses about $8.2 billion to flood damage. What’s more, you don’t need intense flooding to warrant heavy repairs on your home.
Consider how sensitive your electrical fixtures and equipment are to water. Just a mere one inch of water can set you back about $27,000 in repairs, according to FEMA. Without flood insurance, you’ll have to dig deep into your pockets for renovations and repair.
5. Government Aid is Not a Feasible Option
If you think the government has your back, then you might want to think again. The government offers aid in the form of a loan. A loan which you’ll have to repay eventually.
To even qualify for a loan is a long shot in itself. You have to live in an area that is declared a federal disaster area. There’s a slim likelihood that you live in such an area.
Plus, keep in mind that federal disaster assistance is available in less than half of all the flooding events in the country.
6. Average Claim on Floods is About $30,000
The claim for floods seems unbelievable on the surface. However, keep in mind that floods are pretty catastrophic. That said, this figure shows how flood insurance providers are open to getting you back on your feet after a disaster.
Though this figure seems huge, it is just enough to cover all the damage floods wreck on a home.
7. 20% of Flood Claims Comes Outside Flood-Prone Areas
One in five flood insurance claims is made from low-risk zones. This percentage should give you an idea of just how unsafe you’re from floods.
So the next time you want to ignore flood insurance, remember this simple statistic.
Get Flood Insurance: You Won’t Regret It
Hopefully, this piece has conclusively answered “is flood insurance worth it?” Word of advice, when looking for flood insurance, don’t settle for ones with the lowest premiums.
Sometimes low premiums may ultimately be expensive. Low premium insurance policies may have higher deductibles or much lower claims.
The best thing is to do your homework on the insurance provider you settle for and always weigh all your options first.
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