Home Insurance Articles
Why To Include Flood Protection In Your Home Insurance Coverage
2010-03-05
Flood insurance is an often misunderstood but very important type of home insurance coverage. Did you know that actual flooding from a nearby body of water is not the only type of flooding that can damage your home and that it can be an excluded event through your regular home insurance policy? Although you may be required to obtain flood insurance by your federally regulated or insured lender, often it's up to you to decide if you need or want this type of additional insurance protection for your home. You may find that you want to add flood protection simply because you have a lot to lose without it! Many people are under the impression that their regular home insurance policy covers flooding, so they don't even consider getting flood insurance. However, the typical home insurance policy does not cover flood damage. Flood and water losses you might have can include water entry by storms, broken water mains, floods from rivers, oceans, or lakes, backups because of drainage system failures, melting snow, and hurricanes.
If you live in an area deemed a flood zone due to low elevation and nearness to water, you will often be required to obtain flood insurance coverage if you have a mortgage on your home. The lender will require it because of federal regulations they need to comply with. Be meticulous in keeping the lender informed about your ongoing insurance coverage, from year-to-year, because the lender will otherwise assume you don't have flood insurance and buy it on your behalf (at higher prices than necessary) if you don't show them proof of flood protection.
According to the Federal Emergency Management Agency (FEMA.gov), 25 to 30 percent of the claims on flood insurance originate from homes experiencing a flooding event located in only medium or even low-risk flooding areas. So don't assume you will never need flood insurance if you are in a low-risk area! Also, don't think you can just get the coverage as soon as you hear of impending storms or flooding dangers in your community. There is usually a waiting period of 30 days before your flood insurance coverage can become effective. You may qualify for an exemption to the waiting period if you are getting flood insurance in coordination with a new mortgage. Contact your flood insurance provider and lender for up to date details, since laws and regulations can change. Can you survive financial losses due to flood? Do you have the right types of home insurance coverage? Your investment in your home can be better assured when you also include flood insurance as part of your overall insurance coverage.