There are many common misconceptions about flood insurance. Did you know that the standard home insurance policy will often not pay for damage caused by a flood? If you do not purchase a separate flood insurance policy, you may have difficulty overcoming issues such as lost property, structural damage, and even mold. Here's what you may not know:
Do You Have A Mortgage?
If you have a mortgage, and your property is in a high-risk flood zone, your lender might require you to maintain a flood insurance policy. This type of insurance can help protect your property in these high-risk areas.
However, many other homeowners live in a low to moderate risk flood area. If you reside here, your community may be part of the National Flood Insurance Program (NFIP). This may provide an easy option for obtaining coverage. Keep in mind that some mortgage lenders require flood insurance no matter where you live.
It's Never Wise to Assume that Government Help Is All You Need
In dire situations, the federal government will declare the affected neighborhoods as disaster areas. It also means that the government may offer some discounted access to aid clean up after such an event (this is not common). Therefore, it is wise to invest in your own flood insurance.
Make Sure You Know the Risks
If a flood occurs, and you do not have coverage, it can lead to expensive losses. You may lose all your furniture along the bottom floor of your home. You may have the need for mold remediation and internal repairs for drainage issues. Often times, appliances and your home's electrical system are at severe risk of shortage as a result of a flood. You may need to replace all the cabinets, flooring, and drywall in the affected areas.
Because of all the risks present, it can't hurt to check if your homeowners insurance offers protection for water damage. Regardless, it might make sense to purchase a separate flood insurance policy.
Contact your agent at the Ten Eyck Group to discuss your coverage.