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Flood Insurance

Flood Insurance Explained


Water can destroy almost anything in its path including your home and the belongings that lie within it. This is powerful motivation to look into buying good flood insurance. If you own property, you are able to acquire an insurance policy that can protect from such things as water damage resulting from a leaky pipe, all the way up to the complete destruction of your home due to a massive flooding event. Keep in mind the seemingly apparent, namely that homes sitting on the beach or the coast will have higher premium costs as those locales are considered high risk areas for flooding. A good flood insurance plan is indeed vital for many who live in these vulnerable areas.

Who Should Have It?

All who own homes near a body of water, from creeks and streams to lakes, rushing rivers and the ocean, can benefit greatly in buying flood insurance coverage. Flooding from hurricanes is a huge concern for many, especially for those who live in such places as New Orleans or Florida. Any home that lives close to the ocean or Gulf should seriously be protected by flood insurance. Whether it is flooding resulting from severe weather, like a hurricane, or flooding that strikes due to melting snow, (or you name it),this kind of insurance is exactly what you need.

How It Functions

When a flood happens as a consequence of a natural disaster or from a covered human-caused event, a homeowner should immediately file a claim. This is puts the process in motion so you can get the help you need quickly for completing all the necessary repairs to any water-damaged property, structural and personal. Keep in mind that not problems are necessarily so obvious at first. The basement level of a home can become infested with mold and mildew and then there are the often serious structural issues that can be the result of the flooding. This kind of insurance helps to pay for such services as the removal of the flood water, any clean-up, and restoration and rebuilding of damaged homes. Another big benefit to this coverage is how it can help provide living expenses, such as lodging costs, should homeowners be forced out of their flood-damaged homes.

Types of Coverage

It’s important to remember that flooding can be due to something relatively minor, like an overflowing bathtub, or from an event of greater consequence, such as a severe weather event. One policy can cover a wide range of situations in which your property can be either partly damaged or wholly devastated by water. Residential coverage protects one’s home, garage and personal possessions from flooding. Commercial Coverage protects the same building and personal property items that are covered in residential coverage, assuming that the commercial property can be covered under a Preferred Risk Policy. Commercial properties, in some cases however, must obtain standard rated flood policies if they sit in areas that are considered higher risk.

The Benefits

Insurance coverage for flooding is designed to save consumers from giant out-of-pocket costs on remodeling and rebuilding. Homeowners who are protected by good flood insurance can have the peace of mind in knowing that they’re protected from flood-caused tragedy. If water-damaged, things like appliances, furniture, art, etc., can be replaced after a claim’s release of funds. Policies can pay out to the tune of $250,000 for residential occupancies, with an additional $100,000 for items in the home that are damaged or destroyed. Business coverage can reach levels of up to $500,000.