In some ways, flood insurance is a mysterious policy. InsuraMatch wants to help do away with that mystery and the many questions surrounding flood insurance. We want to help people better understand the coverage. One way to better understand what flood insurance covers, as well as what other policies don’t cover when it comes to flood damage, is to clarify some of the myths.
8 Myths about Flood Insurance and the truth behind them:
Flood Insurance is difficult to obtain.
Much like any other insurance policy, obtaining a flood insurance policy can be as easy as picking up the phone. Working with a knowledgeable agent can make the process even easier. An agent can help advise you on how much flood insurance coverage you may need.
Flood Insurance is expensive.
While this can be true, the truth is that flood insurance costs can vary dramatically. In some areas, flood insurance can be under $200 a month for some people. The only way to know how much that added security will cost you is to get a quote for your home.
Flood Insurance kicks in right away.
Typically, flood insurance goes into effect 30 days after you purchase the policy. There are exceptions. Speak with your insurance agent to make sure you understand when your coverage begins.
Flood Insurance isn’t necessary because my home insurance covers flood damage.
Home insurance will not cover flood damage. Many people find this out when it is way too late. This is often confusing because homeowners insurance does cover some water damage, but not from flooding.
If my community flooded, federal assistance would cover the costs so I don’t have to worry about it.
The President must declare the area a federal disaster before a community is eligible for disaster assistance. These only occur in 50% of flooding incidents and the most typical form is a loan that has to be repaid (with interest).
Flood Insurance covers everything.
There is flood insurance for the structure of your home and then there is flood insurance for your belongings. You can have one or both of them, in almost all cases it makes sense to have both for your home. There are also exceptions when it comes to flood insurance and covering basement and crawl spaces. Ask an agent for the specifics when it comes to your home.
Only high-risk areas can obtain flood insurance.
Every area is at risk of flooding, therefore, everyone can obtain flood insurance. The area you are in will help determine price, but everyone is eligible.
Flood maps don’t change.
Flood maps can change which means your flood zone can change. If you are in a low-risk zone, obtain flood insurance, and flood maps change making your area high risk you would be grandfathered in at your price. Something to consider if you live in a low-risk zone potentially at risk of becoming a high risk zone.