Did you know 90% of natural disasters in the US involve some form of flooding?
If you’re worried about a flood damaging your home, you may want to buy some flood insurance. Yet, if you’ve never bought flood insurance before, you may not know how to go about things.
This post will provide you with a quick guide to buying flood insurance for your home. Whether your home is in a high-risk or low-risk area, you’ll soon learn how you can insure your home against floods.
Let’s begin!
Flood Insurance Basics
To begin with, let’s cover some of the basics in regards to flood insurance.
Buying flood insurance is a good idea because, in many cases, you will find that ‘standard’ home insurance policies don’t cover floods.
Furthermore, if you live in a high-risk area, purchasing flood insurance might actually be mandatory. Generally, you can find out if you’re in a high-risk area by contacting the local authorities.
A good flood insurance policy should cover structural and personal property damage that occurs as a result of a flood.
It’s important to remember that flood insurance doesn’t protect you straight away. This is because there might be a period between signing up for the policy and when you are actually protected.
Thus, you should not wait until the ‘rainy season’ to buy your policy, as doing so may put you at risk.
Where Can You Get This Insurance From?
You can get flood insurance from a private lender or the ‘National Flood Insurance Program (NFIP).’ The NFIP is a government-backed initiative designed for those that live in areas at risk of flooding.
NFIP policies can be cheaper, but these policies may not provide the same level of protection when compared to a private insurance policy.
For instance, if you buy from a private company, your personal property will be replaced, and the company will not account for depreciation. If you use an NFIP policy, your personal property will be reimbursed, but depreciation will be accounted for.
How Much Does Flood Insurance Cost?
The average flood insurance policy is estimated to be around $700, but this figure can vary depending on your circumstances.
For instance, if your building has a basement, you might find that you have to pay a higher price.
Luckily, you can take steps to reduce the cost of your insurance policy over time. One such step is to elevate the HVAC infrastructure associated with your property.
It’s worth noting there are tools that’ll help you determine how much it costs to insure your home against floods. If you use these tools, you should end up with a ballpark figure, and this will then help you budget for these costs.
Is Buying Flood Insurance a Good Idea?
Buying flood insurance is a good idea if you live in an area that has experienced floods in the past.
Before you invest in a particular policy, make sure you read through the contract properly. This can be a tedious process, but you need to verify that you’re investing in an appropriate level of cover.
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