5 Things You Need to Know About Flood Insurance

Floods are the most common disasters in the country. And as if that weren’t bad enough, they are also the most costly disasters to recover from. These facts make it easy to see why homeowners should consider flood insurance to protect their property and wallets. But understanding your coverage is just as important as owning it. Let’s take a look at five things you should know about flood insurance.

1. Flood insurance must be purchased separately. Contrary to popular belief, standard home insurance policies do not include flood coverage. This coverage must either be added to your home insurance or purchased separately. Your independent insurance agent can help you find great coverage for the right price. 
   
2. Floods can happen anywhere. Though some areas are designated as flood zones, floods can occur anywhere and at any time. In fact, 25 percent of flood insurance claims come from homeowners located in low- to moderate-risk areas. 
   
3. Flood insurance has limits. Like any policy, flood insurance comes with coverage limits. Standard policies typically include up to $250,000 for your home and up to $100,000 for your belongings. However, you can purchase additional coverage if your property is worth more. 
   
4. Don’t wait to act. When you buy a flood insurance, it usually has a 30-day waiting period before your coverage becomes active. So if you’re interested in flood insurance, it’s best to go ahead and get it now. If you wait until a big storm is predicted before you get coverage, you may be out of luck. 
   
5. The price is lower than you may think. Many people cite the expense as the primary reason for neglecting to get flood insurance. However, the average annual premium for a flood insurance policy is only $650. While still an expense you may have to budget for, the price tag is much less than that of an actual flood and the damage it causes.