How to Protect Your Property with Flood Insurance
Some lenders require homeowners to obtain a flood insurance policy. However, some do not. It generally depends on the risk of flooding around the home. For high-risk areas around the coast or near a river, it’s almost a given.
What is a Flood
A flood is “an overflow of water onto land that is normally dry.” A flood in one area can look different from another by covering just a few inches of land in water versus several feet. The build-up of water can be quick over a few minutes or gradual over many weeks.
What Is Flood Insurance?
Flood insurance is a standalone insurance policy that covers damage caused by flooding. It covers building replacement costs and personal property losses. It is available to all homeowners regardless of location.
Where Can I Get Flood Insurance?
You have two options to purchase flood insurance. You can google, call, or check out: – Private insurance companies – National Flood Insurance Program (NFIP)
How Much Does Flood Insurance Cost?
The cost of flood insurance depends on the property’s location, age, elevation, number of floors, and price to rebuild. Although the average cost is around $700, your fee may be higher or lower. So it really depends on your home and individual factors.
Do I Have to Have Flood Insurance?
Honestly, if we’re using the words “have to,” the answer is it depends. If you live in a low-risk area, you may not be required by law or your lender to carry flood insurance. However, by federal law, if you have a mortgage and live in a high-risk area, you will be required to have flood insurance.
Benefits of Flood Insurance
It offers peace of mind and protection from catastrophic damage related to flooding. It saves you time and anxiety in the event of the unexpected. It may not only protect your home but protect your personal belongings.
To Buy or Not to Buy The decision to buy or not to buy is going to be a personal decision. You have to weigh the risks and the benefits of having a flood policy.
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