How to Protect Your Property with Flood Insurance

Some lenders require homeowners to obtain a flood insurance policy. However, some do not. It generally depends on the risk of flooding around the home. For high-risk areas around the coast or near a river, it’s almost a given.

The National Flood Insurance Program (NFIP) reports that 40% of flood insurance claims come from outside of designated high-risk flood areas. Heavy prolonged periods of rain, slow-melting snow, hurricanes, and rising water levels can cause flooding.

Your home is one of the most expensive things you own. You need to protect it and yourself. It’s time to understand the basics of flood insurance before making a decision that could cost you thousands in premiums or repairs.

What is a Flood

A flood is “an overflow of water onto land that is normally dry.” A flood in one area can look different from another by covering just a few inches of land in water versus several feet.

What Is Flood Insurance?

Flood insurance is a standalone insurance policy that covers damage caused by flooding. It covers building replacement costs and personal property losses. It is available to all homeowners regardless of location.

Where Can I Get Flood Insurance?

You have two options to purchase flood insurance. You can google, call, or check out: – Private insurance companies – National Flood Insurance Program (NFIP)

How Much Does Flood Insurance Cost?

The cost of flood insurance depends on the property’s location, age, elevation, number of floors, and price to rebuild. Although the average cost is around $700, your fee may be higher or lower. So it really depends on your home and individual factors.

Do I Have to Have Flood Insurance?

If you live in a low-risk area, you may not be required by law or your lender to carry flood insurance. However, by federal law, if you have a mortgage and live in a high-risk area, you will be required to have flood insurance.

Benefits of Flood Insurance

Although we can’t predict the effects of Mother Nature, we can protect ourselves. A flood policy ensures that the devastating impact of a flood doesn’t cause catastrophic effects on your financial situation.

To Buy or Not to Buy

Keep in mind that natural disasters can have catastrophic financial effects on families and be devastating to those who are not prepared. For some, the decision to buy is mandatory, and for others, it’s not. But you have to understand that not being required to have a flood policy isn’t the same as there’s no risk of flooding, and you don’t need a separate policy.

It’s 2022, and weird things sometimes happen. Catastrophic flooding can happen anytime, anywhere, and to anyone. Preparing now can save you time, fear, anxiety, stress, and even money. Take time to prepare now, and your future self will thank you.