Flood insurance provides protection to a person’s home from damage as a consequence of flooding or from the effect of a mudslide. In many regions considered high-risk, like coastal areas, this insurance is often necessary and mandated for the homeowner. For those who are renters in these areas, it can also be an obligation. Many people erroneously assume the insurance is included in their normal homeowner’s policy, but this is an incorrect assumption.
Anyone can buy this kind of coverage, whether they live in a low-lying area, a flood plain or even in areas not usually prone to flooding. If the building is in a flood-prone region, owners are often required to purchase a policy if they have a loan for their home that is backed by a federal agency like FHA for example.
Though a few insurance companies offer this kind of a policy, it is important to keep in mind that there is also a federal program available. In order to obtain a policy through a federal program, an individual must purchase a policy through a private insurance agency. Once obtained, the policy goes into effect after a period of 30 days.
Policies can be bought not just by homeowners, but also renters, condo owners and businesses too. Policies vary from coverage level that are minimal to ones that are far more comprehensive, protecting both the outside and inside of your investment.
Flood insurance is helpful not just for total disasters but also in the case of incidents In which just a few inches of floodwater cause damage. Surprisingly, even seemingly minor damage can result in costs to the tune of tens of thousands of dollars.
Living in a region prone to flooding can be quite stressful, so having the proper coverage can help with peace of mind for the homeowner and possibly be a financial life-saver in the event disaster strikes. Be sure to read your policy particulars and understand its details before committing to purchasing coverage. Come by or call us today for more information.