If an extraordinarily powerful storm strikes your region and, say, a local river overflows its boundaries, it is quite possible that whatever systems are in place, drainage and sewer related, will be inadequate to deal with the kind of volume of water that may visit you. Flood insurance is what can cover a good portion of the potential damage your home may sustain as a result- basically anything that originates from outside your home.
Should you not already know, your homeowner’s insurance policy will not cover a natural disaster’s flood damage. A traditional policy will only cover water damage that is the result of internal flooding like that from a broken pipe or a bathtub that overflows. It is smart to purchase a policy for flood protection for many homeowners simply because water can cause a serious level of damage that is very costly to repair. It can mess up walls, destroy carpets, and make anything electrical inoperable.
Often one must purchase flood insurance through the governmental agency FEMA, via the National Flood Insurance Program (NFIP). If you have are paying a mortgage and also reside in a flood zone, you will most likely be mandated to obtain such a policy in order to have a mortgage. Even if you own your home outright, it may be wise to look into flood insurance in order to protect what is likely your biggest investment. Keep in mind that there is a 30-day waiting period before flood policies can come into effect. It will do no good to purchase a policy after or shortly before a major storm hits home.
The premium for flood policies vary depending upon the flood risk in your region. FEMA references 100-year maps to determine the likelihood of flooding when reviewing you application and will put you in a specific flood zone. Should you fall into a higher-risk zone, you’ll be paying significantly more than if your home is in area where flooding scarcely occurs. One way to lower premium costs is to simply opt for a higher deductible.
Flood insurance not only protects one monetarily but also provides the added bonus of peace of mind. Talk to your insurance professional today for more info.