Do you live in a flood zone? You may not, but that doesn’t mean you’re immune to flooding.
Nearly 25% of all flood insurance claims come from homeowners who don’t live in a designated flood zone. That’s because floods can happen anywhere – and when they do, they can cause serious damage to your home and belongings.
Read on to learn more about how flood insurance can protect you and your family!
There Are Two Types of Flood Insurance
National Flood Insurance Program (NFIP) is the official government program that provides flood insurance. It’s available to anyone, regardless of whether they live in a flood zone.
There’s a 30-day waiting period before coverage takes effect, so it’s important to buy flood insurance before there’s a risk of a flood.
Private Flood Insurance is offered by private companies and is usually available to people who live in high-risk flood zones. Private flood insurance policies are typically more expensive than NFIP policies, but they may offer more coverage.
There’s no waiting period for private flood insurance, so you can buy it when you need it. Find out more here.
Do You Need This Insurance?
That depends on a few factors, including where you live, your home’s value, and your personal risk tolerance. If you’re unsure, talk to your insurance agent or financial advisor to see if flood insurance makes sense for you.
There are a few things to keep in mind when deciding whether or not to buy federal flood insurance.
The National Flood Insurance Program Offers Limited Coverage
It only covers damage up to $250,000 per house. If you have a lot of belongings or if your home is worth a lot of money, you may want to consider buying a private flood insurance policy, which offers more coverage.
Flood Insurance Isn’t Available in All States
If you live in a state that doesn’t participate in the NFIP, you won’t be able to buy flood insurance through the government program. However, there may be private options available to you.
Flooding Can Happen Anywhere
Even if you don’t live in a high-risk flood zone, it’s still possible for your home to be damaged by flooding, and that’s why homeowners insurance is so important.
These Types of Insurance Are Expensive
The average cost of a flood insurance policy is $700 per year. If the flood insurance cost is a major factor, you may want to consider other options, such as raising your deductible or buying a less comprehensive policy.
Should You Buy Flood Insurance Protection?
The answer to that question depends on your specific situation. Flooding can occur anywhere, so it’s always a good idea to have some coverage in case of an emergency.
If you live in a high-risk area for flooding, then flood insurance is definitely something you should consider.
However, if you don’t live in a high-risk area or are unsure about your risk level, be sure to speak with an agent before making a decision on your flood insurance.
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