Water damage—caused by a source in or immediately around one’s house—is covered in most homeowners’ insurance policies, so it only stands to reason that damage caused by rising flood waters would also be covered by the same policy, right? Wrong!
Homeowners’ insurance policies do not contain provisions to compensate individuals from rising waters, also known as flood waters. In fact, even if the home owner is protected from damage caused by a hurricane or tropical storm, either through his/her homeowners’ policy or a separate wind insurance policy, the damage caused by flooding will not be covered unless the customer also purchases a separate “Flood Insurance Policy.”
Flood Insurance offers homeowners protection from all types of flooding disasters, ranging from hurricanes to a simple “water main break.” Naturally, this type of coverage is (a wee bit) less important to some U.S. citizens than others (such as those living in very elevated regions of the country), but for Floridians, who reside at right about sea level and who frequently find themselves in the path of massive storms, this type of coverage is absolutely essential.
The importance of flood insurance was truly brought to light following Hurricane Katrina, a storm that left many New Orleans’ residents homeless and hopeless. If anything, that storm taught us that every U.S. resident can be affected by rising flood waters at anytime, and that protection from such waters is and should be a crucial priority.
Flood Insurance: The Basics
As mentioned above, in almost all cases, flood protection requires a separate insurance policy, and unless you have planned ahead for one of these water-laden natural disasters you could be spending thousands of dollars of your own money to repair the damages. Here we will discuss flood insurance in a little more detail, including the types of damages it normally protects you against.
What Is Flood Insurance and Why Do I Need It?
Flood insurance is a type of policy that can protect your home, business and all of your belongings from damages caused by floodwaters, mud and debris.
Just a few inches of water from rising flood waters can rapidly cause tens of thousands of dollars in damages. According to the government website floodsmart.gov, the average amount of a flood insurance claim last year alone was well over $30,000, and surprisingly, not all of these claims came from areas deemed particularly vulnerable to flood waters. In fact, 25% of all claims last year originated from areas once thought to be safe from flooding altogether. No matter where you live, the danger of flooding is very real and should be taken very seriously.
How Much Does Flood Insurance Cost?
Premiums for flood insurance will vary based on three factors: the value of the home or business you’d like to protect, the total value of personal property within your home or business, and the location in which your home or business is located. On average, the premium for flood insurance coverage in the United States will cost somewhere in the neighborhood of $500 to $1,000 per year.
Note: Just as with other types of insurance, the higher the deductible you’re willing to pay, the more you can reduce the amount of your annual premium.
Who Can Get Flood Insurance?
Flood insurance is available to home and business owners, as well as to those who rent a home, apartment or condominium and merely want to protect their belongings.
What Is Covered with Flood Insurance?
Flood insurance can be purchased to protect the building only, the contents or personal belongings only, or the building and its contents together. Here’s a brief list of what you can expect to be covered with a typical flood insurance plan:
- The building and foundation
- Electrical and plumbing systems
- Air conditioning and heating units
- Carpets and flooring
- Window coverings
- Clothing and other personal belongings
Some policies will even cover items such as detached garages and the contents therein, as well as the cost for debris removal that may be required after the floodwaters recede.
Don’t subject yourself to the risk of rising waters; contact Dewey Insurance Agency today for a free Flood Insurance quote.
10620 Griffin Road, Suite 201
Cooper City, FL 33328