Flooding can be an emotionally and financially devastating event. Without flood insurance, most residents have to pay out of pocket or take out loans to repair and replace damaged items. With flood insurance, you’re able to recover more efficiently.
A very large portion of U.S. residents is strongly encouraged to purchase flood insurance to protect against devastating flooding and mudflows.
Is it Really Necessary?
Homeowners and renters insurance does not typically cover flood damage and over 20 percent of flood claims come from properties outside high-risk flood zones.
Flood insurance can pay regardless of whether or not there is a Disaster Declaration. A government grant must be paid back with interest. Before you can even qualify for a loan, your area has to be declared a federal disaster area, and federal disaster assistance is declared in less than half of all flooding events.
Having flood insurance provides crucial recovery help. If you’re interested in purchasing flood insurance your insurance agent will be happy to discuss it in further detail with you.
(Not So) Fun Facts About Flooding
Flooding is the most common natural disaster in the United States, affecting every state. Flooding can be caused by storms, dams or levees breaking, new development changing how water flows above and below ground, snowmelt and much more.
If you have a mortgage on your home and you live in a high-risk flood zone, in most cases, your lender requires you to buy flood insurance. However, if you live in a moderate- to low-risk zone, and your community belongs to the National Flood Insurance Program, then you have the option of purchasing it.
Your homeowners insurance doesn’t cover flood damage. It only covers water falling from the sky. Once water touches the ground and enters your home, it’s a flood, and only flood insurance will pay for that damage.
For instance, if a tree limb pokes a hole in your roof during a rainstorm, and rainwater damages your ceiling and floor, that’s covered by your homeowners insurance. But if heavy rain causes the creek in your neighborhood to overflow into your home, that’s covered only by flood insurance.
Everyone essentially lives in a flood zone, it’s just a matter of how much risk of flood there is. To get an idea of how much coverage you’ll need, create a home inventory and then estimate the cost of repairing or rebuilding your home. Together, those two figures are your total potential loss. You will need to insure the total value of your home. Ask your insurance agent for calculation and for any help or concerns.
About Thayer Innes and Freeman Bunting Insurance Agencies
At Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency, we strive to provide comprehensive insurance solutions to support Ann Arbor homeowners. Our homeowners’ policies can be tailored to meet your specific risk exposures and provides much more coverage than a traditional policy, giving you the peace of mind you deserve. For more information about our products, contact us today at (855) 395-6316.