Of course, the number of non-billion-dollar natural disasters across the nation far exceeds 22. One of the most common disasters to strike any given community is flooding. Of course, not all communities face the same level of risk when it comes to flooding.
If you’re wondering if you need a flood insurance policy and what those policies cover, keep reading for our brief guide to flood coverage.
At-risk homes are typically those that occupy a flood plain. A flood plain is an area around a river that floods when the river overruns its banks. These most commonly occur in valley areas where a river flows.
Your home may also prove at risk if it’s in a lowland area on the coast or near a lake, as any substantial water rise or severe storm can push water into nearby homes.
However, flash flooding can occur anywhere, even and perhaps especially in dry climates like a desert.
Your Mortgage Provider Will Tell You
If you do what most people do and get a mortgage for a home purchase, rest assured that your mortgage provider will let you know if you need flood insurance. They generally make it mandatory to issue the mortgage.
Who Provides Flood Insurance?
FEMA provides flood insurance through the National Flood Insurance Program. This program is available in a lot of places, but only if your local community participates. Not every community does participate because it requires the community to take on some flood mitigation activities.
If you don’t live in an area covered by NFIP or want more coverage, you can also get private flood insurance, such as a Selective flood insurance policy. You can speak with your insurance company for a flood insurance quote if they offer that coverage.
Standard flood insurance policy coverage through NFIP offers a maximum coverage of $250,000 for your home itself. You can also get an additional $100,000 in content coverage. The National Flood Insurance policy limits are non-negotiable.
As home values routinely exceed $250,000, you may need additional private flood insurance simply to ensure you can rebuild your home. The NFIP has also undergone recent modifications in terms of risk rating. If you’re curious about the changes, you can find out more here.
Should You Get a Flood Insurance Policy?
Assuming your mortgage provider doesn’t require one or you own your home free and clear, you may wonder if you should get a flood insurance policy. Your first step is an investigation into whether your home occupies a flood plain or another area that’s at high risk for flooding.
If your home occupies a higher risk area, flood insurance makes sense since you can’t predict floods.
Looking for more information on home insurance, home renovation, or home improvement projects? Check out some more of the posts over in our House & Garden section.