If you are considering taking out an insurance policy on your home, you are likely questioning whether it is prudent to take out a flood insurance policy. Anyone who has a home mortgage and lives in a flood zone that is labeled as "mandatory purchase" or “high risk” is almost always required to obtain flood insurance. This is due to the fact lenders have skin in the game and do not want to put their investment at risk. For those who live in a "preferred flood zone" (areas with a low to moderate flood risk), flood insurance is still beneficial because 90% of flood claims happen in these areas.
Flood Insurance is Worth the Money
Some question whether flood insurance is worth the cost. The risk of flood damage is quite large comparable to the minimal cost of flood insurance. The cost of your home's flood insurance will be determined by the risk area that you reside in. Sometimes, it is as cheap as a couple hundred dollars. In other instances where a home is located in a high risk area, flood insurance can cost thousands of dollars. Yet the insurance is absolutely worth the money as its cost pales in comparison to the amount of money that you will have to shell out if your home is flooded.
Homeowners Insurance Does not Provide Adequate Coverage
The typical homeowners insurance policy only pays for damage caused by water that falls from the sky. This means that it will not cover any damage caused by actual flooding. Unfortunately, once the water is on the ground, the homeowners insurance policy no longer provides coverage. Damage caused by water moving on the ground is only covered by flood insurance. As a result, just about everyone who lives in a high to moderate risk flood zone takes out flood insurance to protect their property.
Flood Insurance Appeals to Every Homeowner
The truth is that we all live in a flood zone. While some have a higher risk level than others, no home is completely safe from flooding. Even those who reside in low to moderate flood risk zones can benefit from flood insurance for the following reasons:
- Weather patterns have never been more unpredictable. A torrential downpour can cause massive flooding in an area that typically does not have a high flood risk.
- A snowstorm can cause flooding once the snow melts.
- While the federal government offers flood aid, it is provided as a loan that must be paid back.
Homeowners will be interested to know that over 20 percent of all flood insurance claims are filed by homeowners who live in moderate to low flood risk zones. It is worth noting that this statistic accounts for those who voluntarily purchased flood insurance. There are many more homeowners out there who endured significant damage but were not considered for the statistic as they were ineligible to file a claim.
Affordable Flood Insurance is Available at Florida Coastal Insurance
If a serious flood damages your property, you will have nowhere to turn but your flood insurance provider. Moving forward without flood insurance is a risk that you do not want to take. Contact Florida Coastal Insurance today for your free flood insurance quote.