All About Flood Insurance

Home insurance provides vital coverage for the biggest asset in our lives, but it is important to understand that this type of coverage does have its limits. One of the most significant limitations of traditional home insurance is that it does not cover damage caused by flooding. Those whose homes are damaged as a result of a flood may find themselves without the cash they need to rebuild their property and their lives.

Fortunately those individuals living in flood prone areas have the option of purchasing flood insurance. This type of insurance provides protection from flooding, including not only structural damage to the dwelling but also damage to water heaters, air conditioning units and furnaces.

Flood insurance also covers the cost to clean up the debris left over after the water has receded, as well as the cost to clean carpets, tile flooring and other surfaces. Damage to personal property is typically included as well, providing excellent coverage for homeowners who live in areas prone to flood damage.

Any homeowner who lives in a flood plane area should at least consider purchasing flood insurance. This type of coverage can provide real peace of mind, and it can be a very good investment. In some cases flood insurance may even be required. For instance, those who have a federally backed mortgage secured by a home in a high risk area may be required to purchase this type of coverage. Those who have previously received a federal grant to cover flood losses may also be required to take out this type of insurance.

Even if it is not required by law, flood insurance can make a great deal of sense for many homeowners. Those who live in high risk areas should definitely assess their risk and determine if this type of coverage is right for them.