Why is Flood Insurance Important?
Many homeowners mistakenly believe that flood damage to their homes is covered by their homeowners insurance. While it’s true that homeowners insurance can help pay for repair costs or to replace your home and belongings if they are damaged by certain perils, such as fire or theft, these perils do not include flood damage.
Why doesn’t homeowners insurance include flood damage?
If flood damage were included in homeowners insurance, insurance companies would not receive sufficient funding from the number of people who are willing to pay for the coverage to actually pay for the flood damage claims.
Floods are the most common and most expensive natural disaster, and homeowners are more likely to experience flooding than having a fire. Just one inch of water in a home can cost more than $25,000 in damage.
What causes floods and who is affected by them?
According to the Emergency Management Institute, no region in the United States is safe from flooding, and all 50 states can experience flash floods. According to FEMA Disaster Assistance, flash floods can bring walls of water from 10 to 20 feet high, and a car can be swept away in just two feet of water. With spring usually comes heavy rains, hence the season is often called “flooding season.”
Do you need flood insurance?
Per federal regulation, if your house is located in a high-risk flood area, then your lender is legally mandated to require you to have flood insurance. If your home falls in a moderate-to-low-risk area, then you may not be required to get flood insurance, but, depending on the area and how prone it is to flooding, you may want to consider being covered for flooding anyway.
If you have any questions about flood insurance or if you need to get it, contact Shorewest Insurance today. https://www.shorewest.com/real-estate-services-insurance
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