Depending upon your mortgage scenario, you may be required to obtain flood insurance in addition to your homeowner’s insurance policy. But even if a flood insurance policy isn’t required for your property, it may be a good idea to consider one anyway. Here’s why!
Homeowner’s insurance rarely covers flood damage.
While your homeowner’s insurance will usually cover water damage from burst pipes or a broken window during a rainstorm, flood damage is a different story. Especially if your home is in a flood zone, you’ll want to read up on your policy’s fine print. Flood insurance is unique in that it covers damage from heavy rains or from a sudden overflow of a nearby river or lake.
Flooding happens even outside of flood zones.
If it can rain, it can flood. According to the Federal Emergency Management Agency, more than 20% of flood-related claims come from what might be considered a low to moderate-risk flood area.
It doses’t take much.
It only takes 18 inches of water to cause potential damage to high-cost items such as electrical and heating/cooling systems. Even one inch of water can do in your carpet, vinyl flooring, and baseboards. Water damage is no joke. On its heals comes wood rot, mold, and even insect damage.
While the added policy is sometimes optional, it’s still worth considering to ensure that flood damage doesn’t turn into a major setback for you and your family.