Flood Insurance For Your Home And Why You Need It

Regardless of your location, the extreme and unpredictable climate changes can be experienced throughout the globe. Even a few inches of flood in your homes can cause damages that require you to shell out more cash than getting flood insurance instead. Flood claims have risen in the U.S. over the past decade to $33, 000. Devastating financial loss can come in many unpredictable forms but the presence of insurance policies like flood insurance protect you. Flood insurance is accessible to home owners, condo owner, renters and commercial renters or owners.

The cost of flood insurance can vary depending on the coverage and risk of the property for actual floods. Content coverage are optional, you might want to include it as well since the content is 75% of the expenses on the repair process. Below are questions that are commonly asked about flood insurance.

Who needs this flood insurance?

Controlling nature is never our forte as human beings. When flood hits, it doesn’t choose those with flood insurance plans—anywhere, anytime. National disaster can be unforgiving so purchasing flood insurance plan might just be useful. It’s not that costly for low-risk applicants.

Where to purchase flood insurance?

The National Flood Insurance Program offers flood insurance with the help with your agent and community. This government-fund organization is to help protect the citizens from financial losses—property damages and injuries. Flood insurance is also 100% transferable. Thus, allowing real estate owners to transfer the plan to a new buyer.

How do floods occur?

Natural disasters are not the main reason for flooding in residential areas. Some also experience flood because of increasing river water, snow melting and rapid rainstorms. Technically, flood means an unexpected accumulation of water where it shouldn’t be. Cutting down trees for parking lots and subdivision add to the floods frequent and unwelcomed visit to your area as well. Excessive rain pour can easily accumulate 2 feet of water and it’s enough to make a car float.

How much will flood insurance cost me?

The better question really would be, “how much will it cost NOT to have flood insurance.” Imagine the repair cost for just an inch of water that enters your home, that would be twice, thrice of you r insurance premium.

In coastal areas, premium is expectedly high. The building and content can be insured to a maximum price of $250, 000 for an annual payment of $5000. This rate is for coastal property owners, for renters, it’s only $100,000 and $2,200 per year. Those with no existing claims yet, premiums are only $2,400 every month and for contents-only plan is $1,000. The government said that in high-risk vicinities, ¼ of the properties are flooded in a 30-year mortgage.

You must not wait for an incident to happen in your home to convince you in getting flood insurance. Most insurance policies have 30-day waiting

Do not wait for a storm to approach before calling an insurance agent to get flood insurance. Most policies require a 30-day waiting time for it to be approved.