Private insurance companies have done away with the practice of offering to cover flooding disasters as part of the standard homeowner’s policy. It is not personal; the insurance companies have simply realized that they will inevitably lose money on these claims. Rather than risk such a loss, they would prefer that their customers purchase an additional policy specific to flooding, allowing the insurance company to make more money on the policies.
It might not sound fair, but look at it this way: the insurance company can not cover claims if they don’t have enough money to back them. It may seem a little more expensive to have a separate policy for flooding, however, if and when you ever need it, you might be glad you went ahead and spent the extra cash, just in case.
Who?
If you live in the desert, odds are, you won’t need to think about flood insurance. However, if you live in a low-lying area known for heavy flooding during rains or near rivers that tend to rise and pore over their banks during the wet season, you really should think about flood insurance.
Approximately 20% of Americans still think their regular homeowner’s policies will protect the from flood damage. FEMA says that 50% of those in at risk areas simply think they can not buy the insurance because they are ineligible. Neither idea is true!
How?
Flood insurance is only available through companies that participate in the NFIP (National flood Insurance Program) and is open to about 19,000 areas nationwide. As long as your community participates in this program and you feel you are at risk, you can buy flood insurance, whether you own or rent.
Flood insurance will cover repairs and property losses that you have experience due to flood and water damage. Even if it costs a bit of money to carry the extra insurance coverage, it is going to cost a whole lot less in the long run when measured against the amount of out-of-pocket expenses to repair or replace what has been damaged due to flooding.
