Floods are a leading cause of death and destruction. Globally, this natural disaster is responsible for more than $40 billion in damage each year. In the U.S., the total annual losses are close to $8 billion.
Some American cities are at greater risk of flooding than others. Jersey City and Union City (NJ), Miramar Beach (FL), Raleigh (CA), and The Woodlands (TX) are just a few to mention. Floods can occur at any time of the year in these areas, causing millions in damages.
Depending on where you live, you might be wondering “Do I need flood insurance?” Generally, the answer is yes. You never know when disaster strikes.
Flood insurance is one of the best investments you can make in your home, especially if you reside in a high-risk area. Let’s see how it works and what it covers!
What Is Flood Insurance?
All states are at risk for flash floods. As a homeowner, the only thing you can do is to be proactive and take the steps needed to safeguard your belongings in case of a disaster.
One way to do that is to sign up for flood insurance. This type of policy covers the water damage caused to your home and its content by a flood.
Note that homeowners insurance doesn’t include coverage for damages due to natural disasters. Some providers may offer flood insurance as an extra option, but you can also purchase it separately.
As far as the cost goes, how much you’ll have to pay depends on the location of your home. Rates also vary from one insurer to the next. Consider using a flood insurance cost calculator, like the one at Betterflood.com, to estimate your premiums.
What Does It Cover?
Just one inch of water can result in damages of up to $25,000 to your home. Considering this aspect, it makes sense to purchase flood insurance before it’s too late.
The amount of coverage depends on your insurance provider. Generally, this type of policy covers the following:
- Personal belongings (furniture, kitchen appliances, clothing, laptops, and more)
- Carpets, window blinds, and curtains
- Built-in appliances, such as freezers and washing machines
- Electrical and plumbing systems
- Staircases, foundation walls, and other structural elements
- Artwork and furs up to a certain value
- Solar energy equipment
- Detached garages
- Fuel tanks
- Permanently installed bookcases
Most insurance companies will pay up to 2,500 in damages to artwork and other valuables. Note that you won’t receive compensation for any damaged goods that were stored in the basement. The maximum coverage limit varies among insurance providers.
Beware that flood insurance doesn’t cover paper valuables, jewelry, and cars. The same goes for patios, decks, hot tubs, and other types of outdoor property.
Do I Need Flood Insurance?
The damage caused by a flood can drain your bank account. If you’re still wondering “Do I need flood insurance,” see how much it costs to restore your home after a natural disaster. The cleanup alone would cost a few thousand dollars.
Don’t take unnecessary risks. Shop around, compare three to five flood insurance quotes, and seek ways to lower your rates.
In the meantime, browse the rest of our blog for more tips on how to save money and keep your loved ones safe!