Questions relating to insurance are often present with those who own a home. Deciding if a certain type of insurance is required also demands certain pieces of information before tapping into the investment. It is noted that there is an average of $3.5 Billion in claims for flooding per year, combined with natural and manmade damage that occurred. This shows that an effective protection program assists with complete assistance for your home.
The characteristics of flood insurance are designed to assist you with damage that may occur in your home. If there is a natural disaster or flood, then damage to your home and property can become problematic. It is noted that floods are the top cause of damage in the United States.
Causes of Flooding
- Hurricanes and tropical storms cause floods that can create far more damage than high winds.
- Extra-tropical cyclones, also cause flooding and storm surge.
- Heavy rains, winter storms, and spring thaws bring flooding to river basins.
- Overburdened or clogged drainage systems lead to property damage both within and outside floodplains.
- Construction and new development affect natural drainage and create new flood risks.
Most believe that flood insurance is preparing for the worst and may not be necessary. However, it is an important factor to consider in a home. If the flood water covers any area of your home, then that space will deteriorate. Furniture and your belongings may be ruined and difficult to replace without the right protection. The flood may also cause problems with the total value of your home, causing your property to deteriorate.
Flood insurance is available to homeowners, renters, condo owners/renters, and commercial owners/renters. Costs vary depending on how much insurance is purchased, what it covers and the property’s flood risk.
All policy forms provide coverage for buildings and contents. Typically, there’s a 30-day waiting period from date of purchase before your policy goes into effect. That means now is the best time to buy flood insurance.