Flood Insurance Not Included
Many assume that all water damage is created equal and that their standard homeowners insurance policy will protect their home if it floods. Unfortunately, many people find out too late that their homeowners insurance will only protect them if the house floods due to a pipe bursting or rain flooding the house due to damage caused by wind or lightning. Considering that flooding is the most frequent and expensive type of natural disaster in the U.S., you should consider purchasing flood insurance regardless of whether you rent or own your home.
Don't wait until the threat of a flood is looming over your doorstep.
Don't I have to live in a special area to get flood insurance?
The government set up the National Flood Insurance Program (NFIP) in 1968 to limit the cost of flooding for taxpayers. This program maps out hazardous flood zones, called flood plains, and these areas are constantly moving as the program continually assesses which areas are most likely to flood.
Often, a mortgage company will require an individual to purchase flood insurance if you live in a flood plain. But even if you don’t live in a flood plain, there is still a chance that your home will be affected by flooding. Don't make the costly mistake of not purchasing flood insurance because you thought you had to live in one of these zones to get it.
I can wait until I know there might be flooding to buy a policy, right?
Unfortunately, no. Most flood insurance policies require a 30-day waiting period between the time that the policy is purchased and the time that it goes into effect. So if you wait until there is an impending storm to buy your policy, you may not be covered in time.
Flood insurance sounds like an important protection for my home, how can I get a policy?
Purchasing flood insurance is a big decision. And because it is federally mandated in certain areas, some policies can seem extremely complicated depending on where you live.