Some homeowners may need flood insurance even if they’re not near a water source.
When we think of floods, we usually think of natural disasters, such as hurricanes, that completely devastate homes and cities. However, floods can happen just about anywhere, and they aren’t always devastating. Even just an inch of water can destroy a home’s foundation, belongings, and cause upwards of $25,000 in damages, according to FEMA. Even though some homes may not be located near the ocean or river, flood insurance may still be required.
What causes flooding?
Flooding can happen to almost any home for a variety of reasons. Some of the most common reasons are:
- Natural disasters
- Excessive snow melting
- Excessive rain
- Dam failure
- Construction/new development
Why do I need flood insurance?
Even today, a lot of homeowners make the mistakes of thinking their homeowners policy will cover flood damage. Unfortunately, this is not the case. Flood damage is typically excluded from standard homeowners insurance, meaning that you would be on the hook to repair your home and belongings after a flood event. Fortunately, supplemental flood insurance is available through the National Flood Insurance Program (NFIP).
Take a look at FEMA’s map portal to see if your home is in a high-risk, moderate-risk, or low-risk flood zone. Note that the map doesn’t consider dams, which can cause significant damage if they fail. If your home is near a dam but labeled low-risk, you still might want to consider getting flood insurance.
How do I buy flood insurance?
Your insurance agent can work with you to make sure that you have the right cover in place when it comes to flood insurance. Unlike other types of insurance, flood coverage is government-backed and is underwritten through the NFIP. That means that your rates and coverage will be the same no matter which insurance agent you go through.