When it comes to natural disasters, floods can be quite horrendous as it is concerned with costs involved in repairing a property. Whether caused by heavy rain, storm surges, melting snow, or overflowing rivers, floods can wreak havoc on homes and businesses, leaving owners with overwhelming repair bills.
Unfortunately, many property owners underestimate the risk or mistakenly believe that standard homeowners’ policies cover flood damage. The truth is that flood insurance is a separate policy which is specifically designed to protect their properties against water damage caused by flooding.
What is Flood Insurance?
Flood insurance is a particular policy defined to provide property damage and loss coverage due to flooding. Unlike usual homeowners insurance, which typically does not cover damages from floods, this type of insurance covers your home, belongings, and sometimes even outdoor property depending on the policy you have.
In the USA, the most prevalent form of flood insurance is the National Flood Insurance Program (NFIP) which is managed by FEMA. However, personal flood insurance policies can also be purchased privately and may offer more comprehensive coverage or higher limits. This includes flood insurance coverage for damage to your property’s structure, electrical and plumbing systems, appliances, flooring, and personal belongings such as furniture, electronics, and clothes.
Why Do You Require Flood Insurance?
Many homeowners mistakenly believe they are not at risk because they do not live in a high-risk flood zone. However, in reality, floods can happen anywhere due to unpredictable weather patterns or even the failure of infrastructures. In fact, around 20% of all flood claims are from those properties that are not in high-risk zones according to FEMA.gov.
Moreover, property owners without flood insurance will have to pay out of their pockets for repairs and replacements. As the average flood claim costs nearly 44,000 dollars, this can be financially devastating. Investing in flood insurance coverage means protecting your most significant asset that is your home from this catastrophic loss.
Types of Flood Insurance Coverage
Primarily, there are two types of flood insurance coverage as follows:
- Building Property Coverage: Pays for the physical structure of your home, including walls, foundation, electrical and plumbing systems, and built-in appliances.
- Personal Property Coverage: Covers personal belongings such as furniture, electronics, clothing, and valuables.
Understand that limits of entity coverage differ according to policies. Standard NFIP policies may have lower limits on the amount covered than private personal flood insurance, which might provide more flexibility and higher limits to meet your needs.
How to Choose the Right Flood Insurance Policy?
Choosing the right flood insurance policy can be a challenging task. You can start determining your risk level based on where you live and what has happened in the past. No matter if you live in a moderate or low-risk area, personal flood insurance could be a wise investment.
Discuss also with knowledgeable insurance agents who will evaluate your property and suggest to you the best coverage options. These don’t only meet your budget but also cover adequately within the structure and personal property.
Contact Whitman Insurance Agency for Expert Guidance!
Protect your home, belongings, and more importantly peace of mind with comprehensive flood insurance from Whitman Insurance Agency. Our caring insurance agents are there to help you understand coverage options and secure a policy that works for your needs and budget. Call us today at 830-632-2900 or email us at whitman@whitmaninsurance.com and safeguard your property against unexpected flooding!
