Flood Insurance: What You Need to Know Before It’s Too Late (Part 1)
1. Introduction to Flood Insurance
Floods are among the most common and costly natural disasters, causing billions in damage every year.
Yet, many homeowners overlook flood insurance or assume they’re already covered under their regular home insurance policies. In reality, most homeowners insurance policies do not cover flood damage, making flood insurance essential for those in flood-prone areas.
2. Why Flood Insurance Is Different From Homeowners Insurance
Homeowners insurance typically covers damages from incidents like fire, theft, and certain natural disasters. However, when it comes to floods, you’ll need a separate flood insurance policy. Why? Flooding is considered a “high-risk” peril that requires specific coverage due to the extensive damage it can cause.
What Homeowners Insurance Doesn’t Cover
Most homeowners policies will cover water damage if it’s caused by a sudden event inside the home, like a burst pipe. But they won’t cover natural flooding from rivers, heavy rain, or storms. Understanding this difference is essential to ensure you’re fully protected.
3. Understanding Flood Risks in Your Area
Flood risk isn’t a one-size-fits-all situation. Flood zones determine the likelihood of flooding in your area and can affect your insurance premium. The Federal Emergency Management Agency (FEMA) categorizes regions based on flood risk, with high-risk areas typically requiring flood insurance.
