Why You May Need Flood Insurance
Where there?s rain, there?s a possibility of a flood. While flood insurance is required for those living in flood-prone areas, others should consider getting it too. Flash flooding due to intense storms can cause significant damages to your property. In fact, it can easily be destroyed to the point that you will need to rebuild it if the flood is bad enough. Reconstructing a property may take months to a year, or even more and it probably won?t be covered at all by your homeowners insurance.
Why do you need to get flood insurance?
It is not a secret that the most common weather emergency in the U.S. is flood. Floods can be due to tropical storms, hurricanes, winter storms, increased construction of infrastructures, or clogged drainage systems among others.
Living far away from a water source won?t guarantee that you won?t be flooded. Remember that a few inches of water inside the house can cause thousands of dollars in damages.
Don?t even assume that you?ll get federal disaster assistance when you?re flooded. It?s only useful when the president declares your area to be in a state of emergency. Even when that is available, it?s usually a loan that you need to repay with interest. With flood insurance, you will receive payouts regardless of whether federal disaster is declared.
What are my chances of getting flooded?
- Flood-prone or high-risk areas
An area is considered high risk if they have at least 25% chance of getting flooded in a 30-year mortgage. There are about 30 million structures (both residential and commercial) in those areas nationwide. And people in these areas are required to get flood insurance.
- Low- to moderate-risk flood zones
Just because you live in a low- to moderate-risk flood zone doesn?t mean that you don?t need flood insurance. About 25-30% of flood insurance claims come from areas that have less than 1% chance of flooding.
How much is flood insurance?
Flood insurance premiums vary according to the date of construction and the risk of flood in the area. It has an average cost of $550 a year. Homeowners may get coverage of up to $250,000 for their home. And get a separate coverage of up to $100,000 for the contents inside it.
Although banks and lending institutions won?t often require you to get flood insurance, it would still be a wise decision. Here at Velox Insurance, we can help you get the right insurance for your home at a reasonable price. Feel free to call us at 1-855-468-3569 or visit us at our office today and get a quote!