Flood insurance is a separate type of policy that should be purchased by anyone who lives in an area that is at high risk for flooding because most if not all standard home insurance policies don’t cover two things – Earthquakes and floods. And for people who live in high to moderate risk areas for floods, there is a 26% chance that your home will experience some flood damage in the thirty year period that you hold your mortgage. Even just a few inches of water going through your home can create massive damage.
Even just a few inches of water going through your home can create massive damage. Think about it. Flood water is going to contain sewage, pollution, and chemical waste such as oil and gas and now it is in your living room, kitchen, bathroom and bedroom seeping into your carpets and walls leaving a lasting imprint. Even in a best case scenario – your carpets and floors will have to be ripped out and replaced and if your walls were damaged you will likely have to rip out the drywall, insulation and baseboards and replace them as well to guard against mold and rot.
Can you afford to replace the contents of your home and do the massive repairs that will be required to make your home livable and marketable again without the help of insurance? If we learned anything from Hurricane Katrina it is that home repairs are extensive and expensive and most homes that were hit by Hurricane Katrina are still damaged and abandoned all these years later as former homeowners were unable to do the costly repairs to make the homes safe again.
Even if you feel safe from flooding because you live in an area that is not considered in a flood zone, you should keep in mind that floods can happen anywhere at any time. Every state has the risk of flooding. Floods can start from more than just Hurricanes or rivers that crest over banks. Winter storms, snow melt off, and even new construction altering the water run off patterns for an area and lead to flooding where it is least expected to occur.
Flood insurance cost varies depending on a variety of variables including the age of the building to be insured, the number of floors, the building occupancy, the location of the buildings contents and where it is located in a flood zone. Other factors that affect premiums include how much coverage you want and do you want to cover the building or the contents of the building or both?
Talk to your agent about flood insurance before you need it because when you actually do need it and don’t have it in place, it will be too late.