Top 3 Factors to Consider When Buying Flood Insurance

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There are few disasters that can be more damaging to your home and property than a flood. Water damage can destroy your valued possessions and render the very foundation of your home worthless. Recovering from the damage a flood can bring can be difficult to impossible alone.

What many homeowners don’t realize is that most home insurance policies do not come with flood insurance. This is something you’ll need to get separately.

What are some factors you’ll need to consider when buying flood insurance? Read on and we’ll walk you through what you need to know.

  1. Your Home Zone

Do you need flood insurance? The need for insurance will vary depending on your location, but just about any home has at least a small risk of flooding. Certain areas are certainly more susceptible than others.

It’s easy to determine the risk that your home might be at by looking up floodplains for your area. These are maps that have designated the flood risk for areas of your town. It is likely divided into high risk, moderate risk, low risk, and unknown risk areas.

These floodplains are also used to price out your insurance plan. The higher the risk area you live in, the more your coverage is likely to cost you. If you don’t want to be blindsided by a high quote, it’s well worth looking into which area your home sits in.

  1. Where to Buy Flood Insurance

There are a lot of different outlets to purchase flood insurance from. FEMA offers what is known as the National Flood Insurance Program. It’s easy for homeowners to get insurance through this program as long as your home is located within an eligible community.

That being said, there are many limitations to the coverage one can get through the NFIP. There are lower price coverage limits and a certain waiting period before newly issued policies can be instated.

For these reasons, some homeowners still turn to private flood insurance companies to get their coverage. You can read more information about the differences between these two options and determine what might be best for your home.

  1. What Flood Insurance Covers

There are different flood insurance policies out there and not all of them cover the same things. Some may cover only your home itself and not the belongings inside of it, for example.

In other situations, you might find that detached garages or guest homes are not covered under your policy.

It’s important to carefully read through all elements of an insurance policy before purchasing. The last thing you want is to have a policy in place, have elements of your home damaged, and then find out too late that you’re not fully covered.

Tips for Buying Flood Insurance

It can be difficult to find the right protection for your home. If you’re considering buying flood insurance, it’s important to keep the above factors in mind.

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