How Do I Know If I Need Flood Insurance?

natural disasters don't give warning, which is why you should buy flood insurance

Flood insurance may not seem like something you need at first glance. But natural disasters don’t give any warning ahead of time. It can happen in numerous ways, and you may not realize you need flood insurance until it’s too late.

How it starts

Your home and the belongings in it aren’t immune to flood damage. Several places in the U.S. do not cover your losses if you don’t have insurance because floods are a result of naturally occurring events. It doesn’t have to be from heavy rain. Your area could experience several inches of snow, which doesn’t pose as much of an issue until it melts. Your home can be flooded that way. Levee dam failure and storm drainage blockage may also be catalysts for your damaged possessions. No matter how the flood happens, one inch of flood causes $25,000 worth of damage.

You can’t control the weather, but you do have the power to protect what you own through flood insurance.

You may be required to have it

Mortgage lenders require flood insurance – particularly areas that the federal government deems to be high-risk flood zones. An area’s flood risk designation may change over time, as weather patterns change and structures such as levees and dams are built and improved upon. A mortgage lender may still require flood insurance regardless of flood risk status.

Flood insurance applies to two types of property – personal property and building property. Personal property includes your belongings, and building property is the building itself. Water damage to either can result in major financial loss.

Why it’s separate

Flood insurance is optional in some cases like in areas at low risk for natural disasters. In this case, standard homeowner’s insurance would be sufficient. You may not need flood insurance here. Instead, it’s encouraged that you get homeowner’s insurance to protect you in case of other unforeseen damages such as vandalism, fire, wind damage, and robbery. These can happen anywhere while floods are highly improbable in certain locations.

Even if floods are rare in your area, the National Flood Insurance Program encourages all people to get flood insurance. 

Considering flood insurance?

At Redwood Agency Group, we are experts when it comes to homeowner’s insurance and insurance for natural disasters. Floods are an unfortunate reality, but there’s something you can do about it. Call a Redwood Agent today to get started!