Many homeowners believe their standard insurance policy covers flooding; however, homeowners insurance policies ALWAYS exclude flooding. Standard homeowners policies cover structural and water damage when wind or a fallen tree creates an opening allowing rain to fall inside your home. However, there is generally no coverage for the home itself or for personal belongings when damage results from rising water.
Flood insurance covers damage caused by rising water. For example, flood insurance covers damage caused by water that seeps up through a home’s basement floor or homes near waterfronts flooded by storm surges. Many homeowners believe that if they are not in a high-risk area, flood insurance is not necessary. Although flood insurance may not be required by your home mortgage company if you are not in a high-risk area, it does not mean that it is not advised. According to www.floodsmart.gov, over 20% of flood insurance claims come from areas outside of high-risk zones.
Flood insurance can be purchased for the structure of your home and/or the contents of your home. Flood insurance is not implemented until 30 days after the purchase date (unless for closing) and rates vary significantly.
For more information on flood insurance for homeowners check out our Flood Insurance YouTube video.