Floods can cause extensive damage to your home and ruin personal items. When this happens, the biggest question is often does my insurance cover flood damage? Unfortunately, most homeowners insurance policies do not cover water damage caused by flooding. Since there is a lot of misinformation about flood insurance coverage, we will explain your options and clear up some misconceptions.
Does My Homeowners Insurance Cover Flood Damage?
The short answer is your homeowners’ insurance policy does not cover flood damage in most circumstances. This has to do with how insurance works. Essentially, you are paying for protection in case something happens.
Your insurance company estimates the cost of repairs in your area and the likelihood something will happen. With some complicated math and historical data, they can make money and still cover damage if something happens.
However, in the case of a flood, the damage probably isn’t just affecting your property. A flood can damage you and your neighbors or even a large portion of your city. Your premium would be astronomical if your home insurance covered flooding.
Is Flood Insurance Available?
You may think you don’t need flood insurance or you’ve never had a flood before, but it’s still something you should consider. Flooding occurs in every part of the country, and 25% of all flood insurance claims come from areas best described as low to moderate risk. With very few exceptions, flood insurance is available throughout the country.
The National Flood Insurance Program (NFIP) was created in 1968 because so few private insurance companies were offering flood damage coverage for residential structures. The program provides federally funded insurance policies at additional premiums, with member communities agreeing to work towards reducing the flood risk in their area. Proof of flood insurance protection is required in some flood-prone areas. Contact your local government offices for more information on flood insurance requirements.
Flood insurance policies typically run around $700 per year, although it might be lower in low-risk areas. Most flood coverage includes up to $250,000 for your home and $100,000 for your possessions. However, the average flood claim paid out is about $42,000. Prices and coverage amounts will vary. Contact your insurance agent for details. You can get flood insurance coverage for any home, apartment, condo, or business. If your community is a part of the NFIP, you can get flood insurance even if you’ve had a flood before.
Can I Rely on Federal Assistance Instead of Flood Insurance?
Too many homeowners rely on federal disaster aid in the event of a serious flood. Unfortunately, this mentality is flawed. Government officials need to declare a disaster before federal aid is available. This isn’t free money, but low-interest loans. If you accept these loans, you need to repay them. The preferred option should always be consistent insurance coverage for nominal premiums, as it cuts down on the governmental red tape.
Homeowners interested in joining the program should make sure their neighborhood participates in the NFIP. Only licensed agents can provide NFIP coverage. Contact your insurance provider or government office to secure the proper flood insurance coverage.
If you need water damage restoration or mold removal services after a flood, our restoration specialists are here to quickly clean up and repair the damage. Call 1-888-443-3110 now for a free estimate on flood damage cleanup services.
