THURSDAY, MAY 20, 2021
Flood insurance is one of the types of home insurance that many people have misconceptions about owning and buying. Did you know that a standard home insurance policy usually will not pay for damage caused by a flood? If you do not purchase a separate flood insurance policy, you may be unable to overcome such issues as lost property and structural damage. And, there is also mold to consider. Having flood insurance is critical to many. Here’s what you may not know.
Do You Have A Mortgage?
In many areas, if you have a mortgage, and your property is in a high-risk flood zone, your lender might require you to maintain a flood insurance policy. This type of insurance can help protect your property in these high-risk areas.
However, many other homeowners live in a low to moderate risk area for flooding. In these areas, your community may be part of the National Flood Insurance Program (NFIP). This may provide an easy option for procuring coverage. Keep in mind that some mortgage lenders require flood insurance no matter where you live.
It’s Never Wise To Assume Government Help Is All You Need
In some flooding situations, the federal government will declare the affected neighborhoods as disaster areas. This typically only happens in dire situations. It also means that the government, in those cases, may offer some discounted access to aid clean up after such an event. However, this is not common. As such, it’s wise to invest in your own flood insurance.
Know The Risks
If a flood occurs, and you do not have coverage, this can lead to expensive losses. You may lose all property along the bottom floor of your home. You may have the need for mold remediation. Sometimes, appliances and your home’s electrical system are at risk as a result of a flood. You also may need to replace all the cabinets in your kitchen and bathrooms. And you may have drainage issues for some time.
Given all of the risks, it can’t hurt to check if your homeowners insurance offers protection for any type of water damage. Regardless, it might make sense to purchase a separate flood insurance policy.
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