Flood Insurance

Flood insurance basically covers property loss due to flooding. Flooding can occur at any time of the year, but most often occurs when spring or winter rains fill river and creek basins to the point of overflow. Low-lying areas near rivers and streams are more susceptible to flooding than high or mountainous areas. Your topographical area defines the type of insurance you need. Every homeowner, however, should have some type of insurance because every topographical area is prone to unexpected floods due to a number of factors such as severe storms. Other factors, like a development that changes water flow and directions, should also be taken into consideration when deciding what type of insurance you need. For example, when development replaces green areas flooding occurs due to low absorption and heavy runoff.

How Does it Work?

Depending on the type of insurance you have, there are a few basic things you need to know. Most homeowner’s insurance only covers water damage in the case of a burst pipe and/or a broken faucet but not floods. Your insurance should cover both property and possession replacement. Insurance companies work with the local community to adjust claims according to how flood-prone the property is and how much insurance was purchased. You may receive up to $250,000 for repairs and $100,000 to replace possessions.

Types of Coverage

This type of insurance is different from homeowner’s insurance in that it covers both property and possessions lost due to a flood. There is also renter’s insurance that covers possessions lost due to a flood. The type of dwelling you own determines the policy rate. For example, a one to four-family structure would be covered for up to $250,000 which doesn’t include possessions. A business is covered under commercial coverage that protects a business from both property and product loss

Major Benefits

The benefits you’ll receive by having this type of insurance include having peace of mind that you will be paid even if a disaster emergency is not declared in your area. There is no payback requirement; such as you would have if you had to take out a home loan. Your business can get back on its feet and recover with money received from your insurance claim. This type of insurance can’t be canceled. Depending on what topographical area you live in, your policy rates can be as low as $600 annually.

"They really took great care of us and saved us a ton on our insurance!" - Bev Scott