Why You Should Carry Flood Insurance
With spring right around the corner, many homes across America are prone to flooding due to the increase in rain showers. According to the Federal Emergency Management Agency, just up to one inch of floodwater can lead to $25,000 in damage. With this in mind, it is important to check if your homeowners insurance covers damages from flooding. But first:
“What is flood insurance?”
Flood insurance is a separate form of property insurance that covers any losses incurred directly from flooding. Flood insurance is available for both commercial and residential properties, and is priced based on factors such as whether or not the property is located in a flood zone and the age or elevation of the property. If your property is located in a high flooding risk zone and your mortgage is from a lender who is government backed, then you may even be required to carry flood insurance.
“But what if I don't live in a high flooding risk zone and/or am not required to carry flood insurance?”
Even if you are not required to carry flood insurance or do not live in a high flooding risk zone, it may still be of value to carry it in order to minimize risk. According to the Federal Emergency Management Agency, 20 percent of all claims related to flooding are filed in low or moderate risk areas. Flooding can occur anywhere, and it is important to ensure that your property is covered.