Many homeowners make the mistake of assuming their homeowner’s insurance covers flood damage. Unfortunately, it does not. The need for everyone who wishes to protect their home and belongings from the threat of a flood means that separate insurance must be purchased.
Flood insurance is an insurance policy against property loss from flood damage. It is most necessary for people living in a flood zone, but anyone can purchase it. Government policy coverage tops out at $350,000 ($250,000 for the home and $100,000 for personal belongings), so if you own an expensive home, you may want to purchase supplemental insurance as well.
To be covered under a policy, the water damage must meet the legal definition of a flood. This definition of a flood is, “A general and temporary condition where water or mudflow inundate two or more acres of normally dry land or two or more properties.” Regular water damage that only affects your house does not count as flood damage in most instances.
It is important to keep in mind that if it rains, it can flood. History of flooding is not the only indication of whether or not you will experience flooding. Construction work, topography, hurricanes, abrupt changes in weather patterns, and other factors can make a flood an unwelcome reality in your life. That’s why it is so important to be prepared and protect yourself with good insurance.
The major benefits of having top quality insurance are that you will have the financial means to rebuild or repair your home in the event of a flood. If you purchase additional protection, then you can also have the real value of your possessions covered instead of the government’s limit of $100,000. Also, a policy will provide you with living expenses while you are waiting for your home to be repaired which can be a real life saver in an already stressful situation.
The benefits of having flood insurance are many and varied. It is important to protect yourself, your family, and your investment no matter where you live.