Flood insurance is often considered unnecessary for many people as they do not live in areas with a high risk of flooding. Before just writing it off, though, there are a few things to know.
It Can Flood Anywhere
You don’t have to live in a high-risk zone to experience flooding because it’s a disaster that can occur anywhere. The misconception that “it never floods” in a particular area leaves many homeowners at a loss when it does occur. Without coverage, they are stuck trying to fix the damage and rebuild on their own.
Sometimes, Flood Insurance Is Required
Some people that live in high-risk zones are required to carry flood insurance. This is typically true if they have a mortgage on the home – private or government-backed. It’s always important to check local laws and any lending requirements to determine if flood insurance is necessary.
A Little Water Goes a Long Way
When you hear or read the word “flooding,” you’re probably thinking of a huge event. While these certainly occur, it doesn’t require a flood of great magnitude to destroy a home. In fact, even an inch of water can cause more than $20,000 worth of damage to a home.
Home Insurance Doesn’t Cover It
A typical homeowner’s insurance policy does not cover flooding. Most of them list flooding as an exclusion, so never assume you’re covered just because you have home insurance. Additionally, you’re not likely to get any government assistance for flood damage unless the President declares a natural disaster.
Do you really need insurance? Outside of being required to carry it, there’s no straight answer to whether or not you need it. It’s up to you. However, as you never know when disaster will strike, it’s better to have and not need it than to need it and not have it.