Do you need flood insurance? You have to decide that based on where you live, whether you are in danger of flooding, and how the cost of insurance compares to the cost of your property.
Keep in mind that flood damage often lasts after the actual flood has subsided. This can look like compromised structural support, permanently damaged furniture, and mold growth.
Consider that if your home were destroyed by a storm surge, an insurance company might consider the cause of the destruction to be a “flood”, leaving you uninsured and homeless.
Be aware that rising temperatures can cause the ocean level to rise and erratic weather patterns emerge. According to many climatologists, this may lead to more intense storms around the world in the coming years.
Only you can decide whether to buy flood insurance. If you live in a flood prone area, you may want to request a quote online or by phone. An insurance quote is free, so it doesn’t hurt to ask for it. You may be pleasantly surprised by the offers you find.
What flood damage will normal insurance policies cover?
Your insurance policy may cover storm damage and may not specify the type of storm damage, so you may be able to repair wind and water damage in one insurance payment. However, this is rarely the case, as insurance professionals will want to pay you as little as possible. Most commonly, you won’t be able to repair wind-related damage because it happened at the same time and in the same place as the flood damage.
If flooding causes a short circuit in electrical power, you may be able to receive compensation for damaged food and damaged appliances. However, this only applies to hurricane-related electrical damage. If heavy rains or river overflow causes electricity to go out, you will probably not be compensated.
Condo owners and apartment renters can fix common areas if the owner or condo cooperative has a flood insurance policy on the building. However, unless each individual dwelling unit has flood insurance, water damage will not be covered for its own living space.
Finally, if flooding makes your home uninhabitable, your standard policy may cover additional living expenses. These expenses include those that go beyond resisting displacement and finding temporary shelter. The amount of money provided for additional living expenses is usually 20% of your insurance policy.
What does flood insurance cover?
The National Flood Insurance Program defines a flood as a partial or complete flood of normally dry land due to overflow of inland waters, rapid accumulation of surface water from any source, or mud streams. This type of insurance covers:
* Any structural damage due to flooding.
* Damage to electrical and plumbing systems or as a result of them after a flood.
* Damage to appliances, heating and cooling equipment.
* Damage to wood paneling, cabinets and furniture.
* Carpet damage and repair
* Damage to personal items such as jewelry and electronics.
* Unavoidable mold or mold damage as a result of a flood
* Removal of debris
* All damage to detached garages
What does flood insurance not cover?
Even a comprehensive insurance policy may not provide comprehensive coverage for all financial losses due to flooding. Insurance providers generally reject these common requests:
* Financial losses caused by loss of use of the property, for example, a flooded home office
* Land outside the insured building, for example trees, patios, septic systems, gardens, swimming pools, etc.
* Mold and mildew damage from a flood that the property owner could have prevented
Ultimately, it is up to you to obtain flood insurance.