Does My Homeowners Insurance Cover Flooding
One of the first things to consider when purchasing a home is does my homeowners insurance cover flooding. Flooding is one of the most devastating natural disasters for homes. It causes incredible damage to the home, its foundation and the contents of the home. Because of its ability to devastate not just one home but entire neighborhoods and even major portions of large cities, it has become a special case in the homeowners insurance industry.
Standard Homeowners Insurance Does Not Protect You From Flooding
Homeowners insurance in its standard form does not cover flooding, but you can get insurance to cover your home from flooding. If you are in an area with a high likelihood of flooding, you will need to purchase a separate policy to protect your home from flood damages. This policy, while it can be purchased through your home insurance company, it is underwritten and must follow the rules and regulations of the National Flood Insurance Program
Why Doesn’t My Homeowners Insurance Cover Flooding
A couple of reasons exist for why your standard homeowners insurance policy does not cover flooding. The damages from flooding are so severe that including it into a standard policy would simply make it unaffordable. Also, not everyone needs flood insurance due to their location. Another very important reason is that flooding affects more than just one home when it occurs. The widespread devastation can bring too much cost to bear on one insurance company and could result in the company not being able to pay out the claims. To ensure that those who have paid into a home insurance policy will receive benefits to rebuild after flooding, FEMA developed the National Flood Insurance Program.
Flood Insurance Policies Work Like Homeowners Insurance Policies
A flood insurance policy for your home will work much the same as your standard policy. The policy will cover damages, both direct and indirect, from flooding. Examples of indirect flood damage would be fires, sewer backup or mud slides that are caused by flooding in your area. The policy will provide coverage for buildings on the property and contents. You can also add coverage for additional personal property. There will probably be a 30 day waiting period before the policy goes into effect. As with a standard policy, there will be a deductible that you can choose for the policy.
Know Your Flood Insurance Risk Zone Before Purchasing Homeowners Insurance
You can find out if you are in flood prone area by learning your flood insurance risk zone. Chances are, if you have already gotten a mortgage or talked to a lender, they have told you whether or not they require you to have additional insurance for flooding. If you are unsure if you need flood coverage for your home, you can visit the FEMA website’s Map Center to find out your flood insurance risk zone.
Homeowners Insurance Quotes for Standard Policies
Homeowners insurance quotes are a great tool to find low rates for homeowners insurance, but they are not as useful when seeking out flood insurance. The flood insurance rates are regulated by the National Flood Insurance Program with few options to tailor your policy for optimum savings. However, you can get quotes for the standard portion of your policy, which can save you hundreds of dollars per year on that portion of your homeowners insurance.