Why Flood Insurance Is Important Even If You Don’t Live In A Flood Prone Area

According to the US list of disasters, a flood is one of the most dangerous and devastating natural disasters in the country, so it is highly recommended that homeowners carry flood insurance policies. Many homeowners find out too late and risk financial ruin once a flood has damaged the property.

Importance of flood insurance

If you live in a flood prone area, then you already understand the importance of having a flood policy and you probably have coverage. However, people who live in areas that are considered flood-safe should also consider getting coverage.

According to the US Climate Change Report, Climate Communication Science and Outreach, a minor change in global temperature can lead to drastic changes in global climate. The report highlights that extreme weather changes can cause severe droughts, rains, storms and floods in different cities. As a result, heavy rains and floods would be more frequent and intense.

Considering the report, even if an area is marked as flood-safe, it’s a smart decision to take out flood insurance. Most private insurance providers also offer conditional flood insurance. For example, if a water pipe breaks due to a fire, your flood insurance will cover replacement costs and property damage.

Home and property insurance versus flood insurance

Many people misunderstand that a specific flood policy requires a separate policy to cover floods above standard homeowners and commercial properties. Residential and commercial property insurance provides coverage for structural failure, fire, building damage, water leaks, and the like. However, flood insurance provides coverage against damage caused by rising water.

Why should you choose private insurance?

The national insurance program offers a number of benefits, which is ideal if you are only opting for basic insurance coverage. However, if you want a personalized insurance package according to your needs, choosing private insurance may be a better idea. The benefits of private insurance include:

• Building coverage (including foundation)

• HVAC coverage, plumbing systems and electrical systems

• Coverage of furniture, clothing and kitchen utensils such as microwave and dishwasher.

• Coverages for possessions including temporarily installed carpets, portable air conditioners, removable microwaves, refrigerators and more

• Coverage of related expenses, including temporary housing

Flood insurance is extremely important in light of changing weather conditions and the financial risks associated with not having flood insurance. Talk to your agent or border to determine what coverage you need.