Floods can cause devastating and costly damage to your home, and a standard home insurance policy generally does not cover flood damage.
Often, homeowners may not realize that their policy does not have flood coverage until it is too late. According to one, only 1 in 4 homeowners has flood insurance 2020 consumer survey From Insurance Information Institute (III).
Federal law requires borrowers with government-backed mortgages to enroll National Flood Insurance Program (NFIP) If they live in a designated flood zone. Even if you don’t have a government-backed mortgage, your lender may require you to take out a flood insurance policy if you live in a high-risk area that is often affected by natural disasters.
And even if you live in a low-risk area, you can still consider getting flood insurance as more than 40% of NFIP flood insurance claims occurred between 2014 and 2018. Outside high risk flood areas,
Keep reading to learn more about flood insurance, and visit Credible Compare Homeowners Insurance Policies Free from multiple companies in one place.
Do you need flood insurance for your home?
Congress NFIP was created in 1968, and the program has since been administered through the Federal Emergency Management Agency (FEMA) and private insurance companies. when disaster strikes, As during Hurricane Katrina in 2005 and Hurricane Harvey in 2017, NFIP manages billions of dollars of insurance payments to affected policyholders, FEMA report,
The decision to buy flood insurance is a lot like buying any other type of insurance. You weigh the cost of the monthly premium by the risk you will need to use your insurance. But since floods usually accompany unexpected natural disastersIt is difficult to assess your risk effectively.
On the other hand, flood insurance premiums are a relatively low price to pay considering the high cost of water damage repairs such as mold remediation, new plumbing and carpeting replacement. FEMA Estimates That just one inch of flood water can cause $25,000 in damage.
PolicyGenius estimates that flood insurance cost $738 per year, but note that the premium you will eventually pay will depend on the location and size of your home as well as your coverage amount. do your research among NFIP and private flood insurance policies to decide whether this type of insurance is worth the cost.
If You’re in the Market for a New Homeowners Insurance Policy, Visit Credible get free quotes And compare your options.
Top 10 cities at risk of damage from hurricane waves
Coastal cities in the South are naturally more vulnerable to flood damage due to hurricane frequency, but they are not the only areas affected by flooding. III. According toIn many of the nation’s largest metropolitan areas, residential structures can be susceptible to storm surges, which occur when ocean water is pushed forward by storms to cause flooding.
Even if you don’t need flood insurance, you may consider purchasing a policy if you live in one of these areas:
- New York
- Tampa, Fla.
- new Orleans
- Virginia Beach, VA
- Fort Myers, Fla.
- Bradenton, Fla.
- Houston, Texas
- Jacksonville, Fla.
- Naples, Fla.
To determine whether you need to purchase flood insurance, contact a financial professional at Credible. Compare premiums for home insurance policies in private insurance companies.
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