Many people have been affected by recent flooding in the San Antonio, TX Area. Sadly, they have been left with significant financial loss because of the damage.
If you are not prepared for mother nature’s surprises, it might be time to consider a flood insurance policy.
Here are a few common questions about flood insurance that will help you prepare for mother nature:
Won’t My Homeowners Insurance Cover Flood Damage?
Unfortunately, one of the most common misassumptions is that flood damage is covered by homeowners or property insurance. Actually, property owners must purchase flood insurance as a separate policy from the National Flood Insurance Program (NFIP).
What is the National Flood Insurance Program?
The National Flood Insurance Program (NFIP), run by FEMA, provides affordable flood insurance to property owners in medium-high risk areas in an effort to reduce the impact of flooding on private and public structures.
How Much Does Flood Insurance Cost?
Costs for flood insurance plans vary based on the property’s level of risk, how much insurance is purchased, and what the policy covers. The best way to get an idea of how much a plan would cost is to talk with your insurance agent about your specific needs and get a quote.
How Soon Can I Use My Flood Insurance?
Be aware that a flood insurance policy normally takes 30 days from the date of purchase to go into effect. In other words, don’t wait until the rainy season begins to purchase a flood insurance plan.
What About Federal Disaster Assistance?
Federal disaster assistance is only available in the case of a federally declared disaster and often comes in the form of a loan that must be paid back.
Many times water damage is not caused by a declared disaster, and therefore government assistance is not available. The good news is that flood insurance will cover any kind of flooding, whether it’s a declared disaster or not, and you do not have to pay it back.
Should I Buy Flood Insurance?
The better question is can you afford to NOT have flood insurance?
Did you know that the average residential flood loss claim is $38,000 and nearly 25% of those claims come from low risk areas?
In the last month alone, over 8 inches of water has covered the southern part of Texas, destroying homes, cars, and properties. Even if you live in a low risk area, it only takes an inch of water to destroy an entire home.
Yes, it’s important to consider purchasing a flood insurance policy.
Especially if you live in a high risk flood area. In fact, many homeowners are required to purchase flood insurance if they have a mortgage and live in a high risk area.
If you’ve never thought about preparing for mother nature’s surprises with flood insurance, now is the time to talk with an insurance agent about your options. With flash floods and continuous rain in the forecast, don’t wait until it’s too late.