Why would you ever need flood insurance? Can’t you just buy a building and then make do with what it has? Not all homes are insured to their potential for water damage. And the people who do have flood insurance often don’t use it. In fact, buying homeowner’s insurance is rarely required, most people just assume that they’ll be protected against floods.
But floods do happen. It happens more frequently than you might think. There are many different types of flood damage, but homes located in low-lying areas are especially prone. Your home’s placement and even the layout of your home can make a difference in how much you’ll end up paying for flood insurance.
Here are some things to consider. Why is it necessary to carry insurance for flood damage? A flood insurance policy gives you the peace of mind that you’ll be able to replace and repair your home should you be subjected to flooding. FloodPrice has tons of useful info on preparing or applying for a flood insurance so that you are prepared for anything.
A policy can also cover you if your home is damaged by such things as ice and snowmelt. You don’t want to find yourself cleaning out the living-room carpet because of water damage – your insurance policy should cover that.
What are the different kinds of flood damage that my insurance policy covers? There are several types of coverage that your flood insurance can cover, depending on when you purchase your policy and under what conditions.
Flood insurance protects against damage caused by rivers, streams, lakes, or ocean water that contains high levels of pollutants. Policy coverage also varies depending on whether your home was built according to flood standards, and whether or not you’re in an area that is at risk of experiencing flooding more frequently.
How can I save money on my flood insurance? If you know that you’re likely to experience flooding at some point, it makes sense to purchase a flood insurance policy before you have to file a claim.
Some companies will waive pre-existing conditions if you simply buy a policy when you need one; others will offer substantial discounts for purchasing policies in certain years. Don’t forget to ask your agent or representative what other discounts you may qualify for if you’ve already purchased a flood policy.
Is it possible to drop my existing flood policy? Many companies offer “drop-rider” policies. These are policies that allow the policyholder to add additional flood insurance coverage to their existing policy. While the policyholder won’t pay any more for coverage, the cost of the premium still depends on what level of protection they would like to maintain.
If you have a special situation, such as a home that’s currently located in an area prone to flooding, it may make sense to consider dropping your current policy. How do I cancel my insurance? If you own a home, you’re required to purchase insurance coverage through a company.
If you don’t, however, you can often transfer the insurance directly from your home to the company of your choice. If you purchase insurance directly from a company, be sure to discuss the details with your agent. How much does a flood insurance policy cost? The price you pay for a flood insurance policy will depend on a number of factors.
These factors include the size of your home and its value, the value of your personal property housed within the home, and the amount of flood damage to the property. In addition, there is a formula that determines your premium based on these same factors.
Therefore, while you may wind up paying the same monthly rate for your flood insurance policy as you would for auto insurance, the actual cost could be radically different.