Authored by Jake Sorensen
Flooding is a natural disaster that can cause extensive damage to homes, businesses, and entire communities. While many people assume that their homeowners or business insurance policies will cover flood damage, this is not always the case. Flood insurance is a separate type of coverage that is designed to protect individuals and businesses from the financial losses associated with flooding. In this article, we will discuss the importance of flood insurance and the standard coverages that are typically included in flood insurance policies.
Why is flood insurance important?
Flood insurance is essential because it can help protect individuals and businesses from the financial losses that can result from flooding. Flood damage can be devastating, and it can take a significant amount of time and money to repair or replace damaged property. Without flood insurance, individuals and businesses may be left with few options for recovery. They may have to pay for repairs or replacements out of pocket, take out loans to cover the costs, or even face bankruptcy.
Additionally, many people mistakenly believe that they are not at risk for flooding because they do not live in a high-risk flood zone. However, floods can occur anywhere, and even a few inches of water can cause significant damage. In fact, more than 20% of flood claims come from areas that are not considered high-risk flood zones. This means that anyone who owns property should consider purchasing flood insurance to protect themselves from potential losses.
What are the standard coverages included in flood insurance policies?
Flood insurance policies typically include two types of coverage: building coverage and contents coverage:
Building coverage is designed to protect the physical structure of a home or business, as well as any attached structures such as garages. This coverage can help pay for repairs or rebuilding if the property is damaged by a flood. It typically includes coverage for the foundation, walls, floors, roof, electrical and plumbing systems, HVAC systems, and more.
Contents coverage is designed to protect personal property that is damaged or destroyed by a flood. This can include furniture, clothing, electronics, and other personal belongings. Contents coverage can help replace or repair these items if they are damaged or destroyed by flooding.
It is important to note that flood insurance policies have specific coverage limits for both building and contents coverage. Policyholders should carefully review their policy and ensure that they have adequate coverage to protect their property.
In addition to building and contents coverage, some flood insurance policies may also include additional coverages such as debris removal, loss of use, and increased cost of compliance coverage. These coverages can help policyholders recover from a flood more quickly and with less financial strain.
Conclusion
As we recently witnessed in California, devastating flooding can occur in places you least suspect it. As we enter the warmer months, the record snowpack will be melting, and rivers will flow to already stressed canals, reservoirs, and flooded land. Most homes qualify for flood insurance with a private flood carrier which makes the premium less than you think. For the cost of two lattes a month at your favorite café, you can guarantee your home will be protected against the next flood.
Contact me today to inquire about a flood insurance policy for your home.
Comments