Why Do You Need Flood Insurance?
The Risk is Real.
Everyone is at risk. Flooding is America's most common natural disaster, yet it is not covered by most homeowners insurance policies.
Truth is, you can live miles away from water and still be a victim of flooding. In fact, nearly 1 in 4 flood insurance claims are paid on policies in low-to-moderate risk areas. That's partly because it doesn't take a major body of water, or even a major storm to cause a flood. Anything from a broken sewer line to a slow moving rainstorm can cause flooding.
Flood Insurance is Affordable.
The problem may be widespread but the solution is simple. About 100 private insurance companies nationwide offer affordable flood insurance backed by the federal government. Policies are available for homeowners, condo owners, apartment owners, renters and business owners alike.
If you live in a low or moderate-risk area, a flood policy can cost just over $100 a year. That's less than 30 cents a day to protect your property against a natural disaster that causes more than $2 billion in property damage in the U.S. every year. Fortunately, even in the most high-risk areas, the cost of flood insurance is around $500 a year (based on the average policy premium).
Disaster Aid is Not Always Available.
Many people don't think they need flood insurance because they believe federal disaster assistance will bail them out. The problem with that is, floods are not always declared a federal disaster area. Even when they are, aid usually is in the form of a loan which must be paid back with interest.
Flood insurance, on the other hand, pays for all covered losses, and unlike loans, that money doesn't have to be paid back. You can cover your home's structure up to $250,000 and its' contents for up to $100,000. For businesses, structural coverage is available up to $500,000 and contents up to $500,000.
Don't count on others to bail you out. Take the initiative to protect your home and business yourself.
Head For Cover.
Don't wait until it's too late. A policy takes 30 days from application to effective date of coverage, so look into flood insurance today.
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