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Flood Insurance

Flood Insurance Information

Flood insurance is a policy that covers a home and its contents following a heavy rain, act of nature, hurricane or other severe water damage. There are several types of policy available, and it helps to speak with an insurance agent. For example, a person who lives in a low-risk area might qualify for a preferred risk policy. In any case, the amount the policy covers depends on how much coverage the policyholder purchases.

The Details

Flood coverage provides funds to repair or rebuild the home after severe water damage. It will also replace personal possessions damaged by flood waters. Like with other insurance, the policyholder must meet the deductible before the policy does its part. And when the insurance is first purchased, the policyholder generally must wait 30 days before the policy is active. There may also be stipulations about how much damage must be done before the insurance will pay anything.

Floods are Not Covered by Homeowner’s Insurance

People who own homes should always consider flood insurance. Coverage for floods is not included in a homeowner’s insurance policy. Flood coverage is separate.

To choose the best type of policy, determine the adequate coverage for your region. Renters should choose a policy that covers their belongings, and homeowners in low-risk areas may opt for preferred risk coverage. In a high-risk area, the mortgage holder or lender may require additional flood coverage.

When you get a policy, an elevation certificate may be required. This determines the amount of coverage necessary to protect your home. Your best bet is to contact an insurance agent for guidance.