Should You Purchase Flood Insurance?

If you have a mortgage on your home and you reside in a flood prone area, then your lender probably requires you to purchase flood insurance. However, if you live in a moderate to low risk zone and your community participates in the National Flood Insurance Program, than you have the option of buying it or not buying it.

If you are questioning whether or not you should purchase flood insurance, your first question is probably “How much is this going to cost?” Federal Flood Insurance can cost just a few hundred dollars, or up to $10,000 a year depending on the risks your home poses. Here are some other facts that may help you make up your mind.

First off, your homeowners insurance does not cover flood damage. Most homeowner’s policies only cover rain damage. Once this water touches the ground and enters your home, it is a flood, and only flood insurance can pay for the damage. Here is an example: say that a tree limb damages your roof during a rainstorm, and a large amount of rainwater then damages your ceiling and floor. That will be covered by your basic homeowner’s insurance. But, say heavy rain causes the creek in the area to rise and overflow your home; that will only be covered by flood insurance.

To be more precise, the National Flood Insurance Program uses this definition of a flood:

“A general and temporary condition of partial or complete inundation of two or more acres of normally dry land or of two or more properties from overflow of inland or tidal waters, from unusual and rapid accumulation or runoff of surface waters from any source, or from mudflow.”

Almost everybody lives in a flood zone; it is just how much risk of a flood there is in your specific area. The NFIP can tell you your home’s exact risk of flooding. Zones A and V are high risk areas, and moderate to low risk areas are B, C, and D. If you’re in zone D, the risk isn’t as clear because the area hasn’t been mapped out yet. But you can still purchase flood insurance and these zones are only used to help determine policy rates.

Did you know, more than 20% of Flood Insurance Claims come from moderate to low zones? That means 1 out of 5, and that isn’t taking into account the homeowners who weren’t insured and couldn’t file claims. No one really knows just how many uninsured people there are, but only 18% of homeowners have flood insurance.

Many homeowners don’t realize that you can’t count on government aid. It comes in the form of loans which you will have to eventually pay back. Before you can even qualify for a loan, your area has to be declared a federal disaster zone, and this type of assistance is declared in less than half of all flooding events.

Also, did you know that the average flood claim is about $30,000? If you live where the water rises so high that emergency rescue crews would have to cut holes in your roof to rescue you, your potential flood loss could be a bit higher.

If you decide that you do in fact want to purchase flood insurance, you should create a home inventory and then estimate the cost of repairing and rebuilding your property. Those two combined make up your total potential loss.

FEMA has an online flood map locator that can estimate your premium and help you find an agent who sells federal flood insurance in your specific community.

Here are some questions to ask your insurance agent:

-What will and won’t be covered?

-Will my policy insure me for actual cost or just what they’re valued at?

-Are there additional expenses?

-Can my rates change?

  • FAQ on Water Damage

    How Can You Cleanup Water Damage on Your Own?

    Cleaning up water damage can be a difficult and time-consuming task. However, there are some things that you can do to clean up the damage and prevent further damage from occurring. The first thing that you need to do is to remove any wet items from the area. This includes carpeting, furniture, draperies, and anything else that is wet. Once you have removed these items, you need to dry the area as much as possible. You can use a wet/dry vacuum to remove the water from the area. You can also use fans to help dry the area. Once the area is dry, you need to disinfect it. This can be done by using a bleach solution or a disinfectant. Once the area is dry and disinfected, you need to repair any damage that has been done. This includes any holes in the walls or ceilings. You also need to repair any damaged flooring. If you have any questions about how to cleanup water damage, you should contact a professional. They will be able to give you more information and help you repair the damage.

    How fast does mold grow after a water leak?

    Under the right conditions, mold can grow within 24-48 hours. Factors that contribue to mold growth include the temperature of the area impacted by water damage and the types of materials that are saturated.

    What happens if you leave water damage?

    Leaving water damage untreated will cause it to spread, potentially damaging other areas of your home. Additionally, long-term exposure to water can lead to the growth of mold and mildew, which can cause serious health problems.

    What is the best way to dry out water damage?

    The first step is to remove the water source. If the water is coming from a leaky pipe, then you will need to fix the pipe. If the water is coming from a flood, then you will need to wait for the water to recede. Once the water source has been removed, you will need to dry out the area. This can be done with a wet/dry vacuum or by using fans and dehumidifiers. You will also need to remove any wet items from the area, such as carpeting, furniture, or clothing.

    How can you tell if a wall or ceiling has water damage

    You can tell if a wall or ceiling has water damage if it is sagging, discolored, or has water stains. A professional restoration contractor can use a moisture meter or infrared camera to detect wet spots and hidden water damage.