Flood
insurance is an essential protection for homeowners who live in areas
where flooding occurs, but most people don't know as much about this
type of insurance as they do about other kinds of policies, such as
homeowners or auto. As a result, many homeowners believe certain
myths about flood insurance. The following are some of the most
common myths.
Homeowners Insurance Includes Flood Coverage
Some
homeowners mistakenly assume that their homeowners insurance offers
protection against flooding. However, reading through almost any
homeowners policy's terms and conditions will show that floods aren't
covered. Most policies don't offer any protection against water
damage, and those that do only cover rainstorm damage and plumbing
leaks - not rising waters.
Flood Insurance Only Covers Rising Waters
While
standard floods - where waters rise beyond their normal levels and
cause damage - are what flood insurance policies are named for, this
isn't the only peril that policies offer coverage for. Some policies
also protect against abnormal waves (e.g. tsunamis), mudslides, and
mudflows, which are all natural disasters caused by atypical water
patterns.
Only Homeowners Who Live in Flood-Prone Areas
Need Flood Insurance
Homeowners
who live in areas where flooding is common certainly have the
greatest need for flood insurance, and they might even be legally
required to purchase coverage. Since flood policies protect against
several different natural disasters and no place is completely free
of flooding risk, though, most homeowners can benefit from getting a
policy.
First,
homeowners who live on mountainsides and near coastlines may need the
other protections that flood policies offer. Certain mountains may
not experience much flooding since water will flow down quickly and
pool below, but those fast flows are what cause mudslides and
mudflows. Homes along the coast are the ones most exposed to large
ocean waves.
Second,
the Federal Emergency Management Agency recognizes that flooding can
occur anywhere. The agency categorizes all of the United States into
several levels of flooding risk. Known areas are listed as being at
mild, moderate or high risk for flooding. Unknown areas are
recognized as having unknown risk - and no areas are deemed
risk-free.
No
matter where a home is located, there's at least a slight chance that
the area could flood. The chance may be unlikely, but recovering from
an unprecedented flood is expensive. Thus, flood insurance is
something that all homeowners should purchase.
Homeowners Can Get Coverage When Floods Occur
Although
homeowners can technically purchase a flood insurance policy at any
time, waiting until a flood is imminent or occurs won't get
homeowners the protection they want. Most flood policies come with
30-day waiting periods that delay when coverage goes into effect, so
people can't buy coverage at the last minute. They need to have it in
place before a flood is forecast.
Flood Insurance Is Expensive
Many
homeowners assume that flood insurance is expensive since flood
damage costs so much to recover from. The coverage, however, is
remarkably affordable, even for homeowners in high-risk places.
In
places where floods are rare, policies usually don't cost much at
all. The risk that insurance companies assume by underwriting
policies is relatively minimal, and they can keep premiums low as a
result.
In
places that flood regularly, the total cost of policies is much more
- but the government subsidizes policies. Homeowners who live in
high-risk regions can get coverage through the National Flood
Insurance Program, which makes affordable flood insurance available
to homeowners who live in places where policies would otherwise cost
much more.
To
get help finding flood
insurance
for your home, contact the experienced insurance agents at Livings
Insurance.
