Flood Insurance

Why is Flood Insurance Not Included in Homeowners Insurance

Homeowners insurance is important coverage for any homeowner to have. It covers your home and belongings if they are destroyed by disasters such as hurricanes, tornadoes, or fires. But many homeowners do not realize that standard homeowners policies do not cover flood damage.

Flooding insurance is not included in regular homeowners insurance because many people do not live in places with high flood risks. It stands to reason that if one lives far from any bodies of water, they should not be required to pay higher premiums to be covered in the unlikely event of a flood. It is mainly for that reason that insurance against flooding is sold separately from regular homeowners policies.

Federal Flood Insurance Program

This special type of insurance is provided by the Government through the Federal Flood Insurance Program. It can be purchased from your homeowners insurance agent, but it is completely separate from your homeowners policy. Flooding insurance is relatively inexpensive, so if you live near a body of water it is well worth considering.

Those who are not in flood-prone areas may be able to get a lower premium on their insurance. Even if you're not near a body of water, flooding is possible from melting snow or water running downhill. If you might possibly be at risk for these occurrences, you may want to consider insuring your home against floods as well.

What Does Flooding Insurance Cover?

Flooding insurance covers the replacement value of your home and the cash value of your belongings. There is a limit to how much the insurer will pay on both. To compensate, some specialized insurance companies sell excess flooding insurance. It picks up where federal flood insurance leaves off, covering the remainder of replacement value on your house and cash value of your personal property.

Federal Emergency Management Agency (FEMA)

Often people in flood-prone areas do not purchase flooding insurance because the Federal Emergency Management Agency (FEMA) offers assistance after floods there. But FEMA can only provide assistance in areas that have been declared federal disaster areas. In the United States, if the President does not make this declaration, those without insurance receive no federal assistance for rebuilding.

It is important to remember that flooding insurance has a 30-day waiting period. That means that if you go out and buy insurance after a flood warning is forecast, your policy will not cover any damages that may be incurred from that flood. If you believe that you are at risk for flooding, getting this added insurance right away is the practical thing to do.

Flood Insurance - Added Security

Flooding insurance is not required by your lender in most cases. But if you get a federally backed mortgage in an area with high flood risk, the law requires you to have this additional insurance. Whether it is required or not, flooding insurance can give you the security of knowing that your damages are covered in the case of a flood.

Return From Flood Insurance To Covenant One Realty