Homeownership comes with a large part of the guarantee. From making necessary repairs and changing locks to checking your smoke detector.
One of the most important responsibilities is evaluating insurance options. If you are buying a home with a mortgage, your lender will likely require you to insure your home. However, the lender may not require you to have flood insurance unless you live in a designated “high risk” flood area. In this case, the decision to purchase or not to purchase flood insurance is up to you.
So should you purchase flood insurance even if you don’t live in a high-risk area? This is a question that weighs heavily on the minds of many Americans, and for good reason.
According to the Federal Emergency Management Agency, floods are the most frequent and costly natural disasters in the United States. The agency reports that one inch of water in the average home can cost more than $26,000 in damage. Unfortunately, this damage occurs not only in coastal states. In recent years there have been floods in all 50 countries.
While flood insurance can certainly be of benefit in the event of an unforeseen natural disaster (hurricane, snowmelt, heavy rainfall, and other extreme weather conditions), it also tends to be quite expensive. Often the decision to buy or opt out of flood insurance comes down to your costs and budget.
What is flood insurance?
The definition of flood insurance is a type of property insurance that covers an apartment against water damage, for it specifically refers to floods.
This type of insurance policy is supported by the National Flood Insurance Plan. Homeowners and renters can purchase flood insurance through an insurance agent.
What is considered a flood?
- General and temporary condition of partial or total flooding of 2 dunams or more of normally dry land or 2 or more objects (at least one of which is the property of the insured).
- – Inflow of groundwater or tides
Accumulation or abnormal and rapid accumulation of surface water from any source
- – Debris flow
Collapse or subsidence of soil along the shore of a lake or reservoir similar to the result of erosion or washout caused by openings or water flows that exceed expected cyclic levels, resulting in flooding , as defined above.
What does flood insurance cover?
Provides general advice on flood coverage in your organization’s insurance coverage summary. Therefore, the organization recommends purchasing insurance coverage for both the building and personal property. Here is what is insured under these two programs:
Construction real estate coverage – Insurance structure and fund; Electrical and plumbing systems; Central air conditioning equipment, stoves and water heaters; Built-in refrigerators, ovens and household appliances; stationary rugs; Claddings, wall panels, bookcases and cupboards are permanently installed; shutters; garages; And waste disposal.
Personal property insurance – Personal belongings; Curtains; Mobile air conditioners and windows; Portable microwave ovens and dishwashers; Rugs; Washing machines and dryers; Food and freezers inside; And some valuable items.
What is not covered by flood insurance?
Items not covered by building property or personal property insurance include: damage caused by moisture, mold or mildew that the property owner could have avoided; Coins, precious metals and jewels; Property and objects outside the building; Living expenses such as temporary housing; Financial losses caused by the termination of activities or the inability to use the insured property; And most vehicles start like cars.
Does home insurance cover flood damage?
No. Flood damage is usually not covered by home insurance. Therefore, if you want to insure against flooding, you will need to purchase a separate flood insurance policy.
Who should consider buying flood insurance?
Given that floods are the most common natural disaster in the United States, we encourage any homeowner or renter concerned about potential flood damage to consider flood insurance. Those who live in high-risk areas, such as coastal cities or low-lying cities, are more likely to require their lender to purchase flood insurance. If you live outside of a high-risk area, you should still consider purchasing a separate flood insurance policy, especially if the area is subject to heavy rain or snow and/or is located near a river, beach, or dam.
according to Floodsmart.gov “More than 20 percent of flood claims come from homes outside of high-risk flood zones.”