How to Protect Your Property with Flood Insurance

The National Flood Insurance Program (NFIP) reports that 40% of flood insurance claims come from outside of designated high-risk flood areas. Heavy prolonged periods of rain, slow-melting snow, hurricanes, and rising water levels can cause flooding.

Your home is one of the most expensive things you own. You need to protect it and yourself. It’s time to understand the basics of flood insurance before making a decision that could cost you thousands in premiums or repairs.

A flood is “an overflow of water onto land that is normally dry.” A flood in one area can look different from another by covering just a few inches of land in water versus several feet. The build-up of water can be quick over a few minutes or gradual over many weeks.

What is a Flood?

What Is Flood Insurance?

A standard homeowner policy doesn’t cover flood damage. Sure, it may cover interior water damage from a burst pipe or a tornado. But, it won’t cover damage by floodwaters, hurricanes, excessive rain, or a broken dam.

Flood insurance is a standalone insurance policy that covers damage caused by flooding. It covers building replacement costs and personal property losses. It is available to all homeowners regardless of location.

How Much Does Flood Insurance Cost?

The cost of flood insurance depends on the property’s location, age, elevation, number of floors, and price to rebuild. Although the average cost is around $700, your fee may be higher or lower. So it really depends on your home and individual factors.

If you live in a low-risk area, you may not be required by law or your lender to carry flood insurance. However, by federal law, if you have a mortgage and live in a high-risk area, you will be required to have flood insurance.

Do I Have to Have Flood Insurance?

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