If your property gets flooded and you don’t have the right insurance coverage, you can find yourself with bills totaling tens or even hundreds of thousands of dollars. Just an inch of water in a house can cause major structural and property damage.
What You Should Know About Homeowners Insurance and Flooding
A standard homeowners insurance policy doesn’t cover flood damage. Many homeowners find that out the hard way.
Homeowners insurance covers damage caused by water falling from the sky. For example, if a severe storm damages your roof and rain gets inside your house, your homeowners insurance policy should cover your loss. If a storm causes a nearby river to overflow and water from the river enters your house, that will be considered flooding, and your homeowners insurance won’t cover resulting damage.
You Might Not Be Required to Get Flood Insurance, But You Should
Certain areas have been designated as flood zones. Homeowners who live in those areas and who have federally regulated mortgages are required to have flood insurance.
If you live in an area that isn’t considered a flood zone, it’s still a good idea to have flood insurance. Many instances of serious flooding occur in places that haven’t been labeled as flood zones. Severe weather is expected to cause the amount of flooding and flood damage to increase in coming years.
Why You Shouldn’t Count on Federal Assistance
The federal government sometimes provides assistance after a flooding event. That usually takes the form of low-interest loans, but help is only made available after a federal disaster declaration, which is not made in all cases involving flooding. Even if a disaster is declared and you qualify for a loan, the interest will likely be higher than the cost of flood insurance.
In some cases, the federal government makes grants available, but there is a cap on the amount a homeowner can receive. If your home and belongings are severely damaged or destroyed by flooding, a grant might not be enough to cover your losses.
How to Purchase Flood Insurance
If your community participates in the National Flood Insurance Program, you’re eligible to buy flood insurance through the federal government. You can also obtain flood insurance through an independent company or insurance agent. Premiums vary depending on location and risk.
Don’t wait until a major storm is expected to get flood insurance. In most cases, there is a 30-day waiting period between the time when a policy is purchased and the first premium is paid and the date when the coverage goes into effect.
