Top 6 Things to Know about Flood Insurance


Does your home insurance policy cover damage from floods? Maybe you better check again. Let’s take the case of Fred and Wilma G for example. They had a beautiful house in Southeastern Massachusetts. Naturally, they made sure that their property was fully protected from all kinds of hazards that might befall them. For instance, they had coverage for tornadoes and most forms of storm damage. However, they found out too late that they did not have flood insurance on their home, and it cost them dearly when a large storm unexpectedly hit the region, causing major floods. Here are 6 very important things to know about this kind of insurance coverage.

1. Flood coverage is not standard home insurance coverage, so check your policy to find out if you are covered for floods. Some people assume that they have this type of coverage but they may be wrong. Flood coverage is usually an option and you have to request it. Not knowing you are unprotected is a good way to end up like Fred and Wilma, and this could be disastrous.

2. It can happen to you. Maybe you do not live close to a river or lake. Perhaps it has never flooded in the area in which you live. There is no way to predict things like freak tropical storms or highly unusual weather. The NFIP (National Flood Insurance Program) claim that floods are the top of the list of disasters in the US. In addition, you have a greater chance of suffering flood damage than damage from fire. You should make sure that your home, contents, and property, are fully protected. If you do not have flood coverage, you could be out in the cold, literally.

3. Don’t Assume that FEMA disaster assistance will take care of you. If you have insurance to protect you against flooding, your insurance company will take care of the losses. FEMA may not help you for several reasons:
• It’s hard to determine who qualifies for Federal assistance sometimes
• Your region must be officially declared a disaster area
• Often times FEMA assistance is in the form of loan and you must pay the money back. These loans are not interest free either.

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