While we seldom like to think of floods and other natural disasters, every year we hear of more and more areas that are affected by flooding. Thousands of dollars of damages can occur from only an inch or two of water. If you live in an area prone to flooding, you may want to check into getting some insurance for floods.
Flood insurance is a specific type of insurance that will protect you from loss caused by a flood. The people that generally carry flood policies are those who live in areas that are considered as flood zones and just want the extra protection or those who live in flood zones and have mortgages on their property.
Unlike other natural disasters or “acts of God”, floods are not typically covered under a basic home insurance policy. They need to be purchased as separate policies. An interesting fact is that with all the people living in flood zones in the U.S., only about twenty percent own flood policies.
When you purchase a flood policy, you’re required to pay a premium, usually billed annually or bi-annually. Flood insurance is usually fairly inexpensive. The price of the premium is based on different factors, including home value, amount of insurance and the deductible you choose. The deductible is the amount the customer must pay towards a claim before the insurance company will pay. Flood policies are generally required to be in place for a few weeks before they can be used.
When you purchase a flood policy, you’re generally given the choice of two policy types. One type is for the actual building, which would be your home or business. The second type of coverage is on personal belongings that are inside the building such as furniture, appliances, clothing, etc. There are some things inside the building that may not be covered just as the policy will not cover outside items like trees, shrubs or self-propelled vehicles.
Flood policies are ideal if you live in a flood-prone area. It provides coverage that’s typically not included in your regular home insurance. It will also pay out even if a natural disaster was not declared.