Did you know that floods result in more losses each year than any other type of natural disaster?
That’s because all 50 states are subject to some sort of flooding. Even if it is categorized as just flash flooding, and all that damage can add up quickly.
According to Floodsmart.gov, total flood insurance claims average about $4 billion each year!
If you’re considering purchasing flood insurance, here are 5 common myths you should know more about.
Myth #1: Your homeowners insurance includes coverage for flooding
Given how common flooding can be, you would think that it would be covered in your home’s policy. Although certain natural disasters such as lighting strikes, hail damage and fires are included and covered by your standard home insurance, flooding is not covered.
Just a few inches of flood water in your home can cost tens of thousands of dollars in damage, and even a car can be carried away in as little as two feet of water. Make sure your belongings are insured in some way or another!
Myth #2: You have to live in a flood plain to qualify for flood insurance
Anybody can purchase insurance for their home to protect against flooding. It’s a common misconception that flood insurance is only for high-risk areas, but that’s simply not true. If you are looking to determine how “At risk” you are, or want to purchase insurance, visit the National Flood Insurance Program (NFIP) website for more information.
Myth #3: Your flood insurance covers everything
While flood insurance covers a lot of the damage to property and possessions, it does have limitations. Here are a few of the things that are not covered by a flood insurance policy:
- Damage caused by moisture, mildew or mold that could have been avoided
- Property and belongings outside of an insured building such as wells, septic systems, decks, patios, fences, seawalls, hot tubs and swimming pools
- Most self-propelled vehicles (your cars and trucks)
To avoid loss in the event of a flood, it is important to discuss all the possible limitations on your property with an insurance agent before buying your policy.
Myth #4: All water damage is the same
Water damage claims and flood damage claims are actually not the same thing. Water damage is defined as damage that occurs before the water comes into contact with the ground. For example, that could be a heavy rainstorm that leaked through your roof or even a burst pipe.
Flood damage is caused when an existing body of water overflows onto normally dry land. Both water and flood damage are covered by two different insurance policies.
Myth #5: You can’t buy flood insurance if your property has been flooded before
You are eligible to purchase flood insurance if your home has been flooded previously IF your community is participating in the National Flood Insurance Program (NFIP). The NFIP helps reduce the impact of flooding by encouraging communities to adopt and enforce flood plain management regulations. This program allows property owners to buy insurance from the government to protect against flood damage and losses.
Myths Busted. Now What?
Hopefully some common misconceptions about flood insurance have been dispelled for you. And just remember that if you plan on buying flood insurance to give it at least 30 days to become effective to properly insure your home!
Call us at 678-715-9513 to talk about your flood insurance options.