Flood Insurance

Water is essential for life, but it also can be extremely damaging when it is not properly controlled. When even a small amount of flooding occurs inside your home, substantial and expensive damage may develop within a very short period of time. Some of the more common reasons why water may flow through your home uncontrolled include plumbing issues and severe storms. Be aware that a serious flood may also damage your home’s exterior materials and even the foundation. Many homeowners assume that this type of water issue is covered under a basic insurance policy, but flood insurance typically needs to be purchased separately.

How Does It Work?

If you live in a high-risk flood zone or in an area that is otherwise prone to flooding, your mortgage lender may require you to purchase a specific amount of flood coverage. Some homeowners even choose to purchase more than the minimum amount of flood benefits required. Because the risk of flooding inside the home is present even if you do not live in a high-risk area, it makes sense for many homeowners to consider the pros and cons associated with buying this optional coverage. Floods can occur without warning, so it is best to be prepared with excellent coverage ahead of time.

When you are setting up flood insurance for your home, spend time reading about inclusions and exclusions in your policy. Even with this type of coverage in place, not all flooding events may be completely covered. For example, some providers only offer partial benefits for basement floods. You understandably do not want to be surprised after a flood by learning that your coverage will not pay for all of the repair work. In addition, be aware that a flood event can lead to mold growth. Mold remediation is not generally included in a flood policy, and coverage for remediation may need to be purchased separately as well. Before you make a purchase, learn more about any requirements for this insurance as well as your home’s risk factors. By doing so, you can determine if you should purchase it and what limits to establish.