If you’re considering getting flood insurance for your home, you might have a few questions. (And even if you do already have flood insurance…you still might have some questions!) We’ve got ten things that you should know about flood insurance, which can protect your home from what could be a very costly loss.
10 facts you should know about flood insurance.
1. Home insurance doesn’t cover flooding.
Many people assume that their homeowners insurance policy will cover flooding. Unfortunately, this is simply not true. Most home insurance policies specifically exclude flooding. (In insurance terms, flooding means that there’s a lot of water on the ground outside where there usually isn’t.) To protect your home, you would need to get flood insurance.
2. Flood insurance isn’t just for homes that are in high-risk flooding zones.
Even if your house isn’t located in a “high-risk” flooding area, you can still get a flood insurance policy. (In fact, you might be able to get a preferred risk policy – more on that in a bit.) FEMA estimates that about 20% of all flood claims come from homes that are in low or moderate-risk areas. Flooding is the most common natural disaster in the United States.
3. To get flood insurance, you have to go through the NFIP.
When you go to get a flood insurance policy, you’ll probably end up going through an agent and getting the policy from the NFIP (National Flood Insurance Program.) They’re kind of the go-to when it comes to flood insurance. (But you can’t go straight to the NFIP – you have to go through an agent.)
4. There’s basically only one price.
Since you’re probably getting your policy from the NFIP regardless of which agent you’re going through, the price will be the price. There’s not going to be a difference if you go to various insurance agencies.
5. There’s a 30-day waiting period before the policy takes effect.
Most likely, you will have to wait thirty days for your policy to become effective after you purchase it. There are a few exceptions to this, such as if you need the insurance in order to get, extend, or increase a mortgage loan. So, be prepared to wait for a while when you purchase your policy. Don’t wait until you hear weather reports of torrential rain in the near future to get flood insurance – it’s best to be prepared.
Protect your home from flooding. Get a flood insurance quote today.
6. You have to pay all at once.
Flood insurance policies have to be purchased in one go – so basically you’re paying in full. You can’t really pay in installments. So, it’s important to be prepared for that so you’re not caught off-guard by the sticker shock if you were hoping to pay for the policy on a monthly basis.
7. Preferred risk policies are a thing.
If your home is in a low or medium-risk flood area, you might be able to qualify for a preferred risk policy. This is basically flood insurance designed for homes in low to medium-risk homes. The nice thing about preferred risk policies is that they can be less expensive. Don’t forget to ask your agent if this could be an option for you.
8. Different details about your home affect the price of flood insurance.
Just like home insurance, there are a lot of different factors that go into your flood insurance rates. Your rates can be impacted by the following:
- How old your home is.
- What your home is made of.
- Whether you’re in a high-risk flood area.
- How many levels your home has.
- How high off the ground your lowest floor is.
- Your deductible.
- How much coverage you choose to purchase.
Your rates are related to how much of a risk your home would be to insure. That’s why the insurance company looks at this long list of details about your house. It’s not just for fun, believe it or not.
9. You can insure your home and your personal belongings.
You can insure the structure of your home for up to $250,000 and your personal belongings for up to $100,000. It’s important that you make sure your policy will cover both the physical home and its contents.
10. Renters can get flood insurance, too.
If you rent your house or apartment, you can get flood insurance to protect your personal belongings. Insuring the structure of the house or dwelling itself against flooding is the landlord’s responsibility, not yours, as they are the one who owns the building. However, you can still protect your valued treasures.
If you’re looking for flood insurance or home insurance, our team can help you get the coverage you need at a great rate. Get started with your quotes by filling out our online quote form or giving us a call. We like to make insurance easy.