Many people think that as long as they don’t live in a flood zone or near a large body of water that it isn’t necessary to purchase flood insurance. The following are 5 reasons why most homeowners should consider having Flood Insurance as part of their overall insurance policy.
1. Floods Are the Number One Natural Disaster
According to FEMA, it’s estimated that approximately 25 percent of flood insurance claims are made by people who actually live in areas that are considered a low to moderate risk for floods. Floods can happen for a variety of reasons besides the overflow of a river or other large body of water. Broken water mains, poor drainage systems, and the rapid accumulation of rainfall can all lead to flooding that is serious enough to cause extensive damage to a home or business.
2. Most Homeowner’s Policies Do Not Cover Floods
Standard homeowner’s insurance generally does not cover damages incurred by flooding. This means that 100 percent of the costs come out of pocket after a flood. Flooding has occurred in every state and can happen at any time throughout the year. For those who actually live in a flood zone, it’s more likely that they will experience a flood than a fire.
3. Losses from Floods Are Expensive
People often think unless the house is nearly submerged that the damage will be minor. Even a few inches of water can lead to losses that easily add up to thousands of dollars. The cost of replacing all items at floor level throughout a home, as well as carpet and floor damage, can cause over $20,000 in a house that is approximately 2,000 square feet. As little as two feet of water can even carry a car away.
4. The Federal Government Does Not Cover Flood Damage
There is generally not federal assistance available to homeowners unless the President officially declares the area a disaster. Federal disasters are declared in less than 50 percent of floods. Even if a disaster is declared, assistance is usually provided in the form of a loan that will eventually have to be paid back.
5. Flood Insurance is Reasonable
If a homeowner lives in a low to moderate risk area, premiums are usually very reasonable. Several factors are considered when determining rates for flood insurance. A few may include a home’s location, age, and contents. It’s important to remember that the time to get flood insurance is well before storm or flood warnings have been issued. Coverage normally isn’t effective until 30 days after a premium payment.
Manzo Insurance provides a variety of insurance coverage, including flood insurance. Manzo will find the most competitive rates for the type of insurance that you need. No matter where you live or what kind of insurance is needed, the experts at Manzo can get the flood insurance that’s right for you.