Flood insurance is a topic that is shrouded in mystery for many homeowners. This topic of conversation is usually initiated when a lending institution requires the policy as condition of the loan. But flood insurance is something that everyone should investigate regardless of a loan requirement.
As the most common natural disaster, floods caused claims of more than $3.5 billion annually from 2005 to 2014. The average claim was $42,000.
But flood insurance isn’t as mainstream to most people like home or auto insurance. That is where the mystery comes from for most homeowners. Here are five things you need to know about flood insurance.
- You live in a flood zone – That’s right. Everyone lives in a flood zone. The question is, whether or not you live in a low, moderate or high risk flood zone.
- Contents coverage must be purchased separately. Unlike homeowners insurance which has a limit built in for you, contents will only be covered if you request the additional coverage.
- When it comes to basements, or areas that are the below the lowest elevated floor, coverage is limited. In fact, most personal property such as clothing or electronic equipment are not covered. Your finished basement? Not covered. However, appliances such as washer and dryers or food freezers are covered. The scope of the policy only covers your home. Anything outside the property like sheds, pools, decks or patios are not covered under a flood policy.
- The maximum you can insure is up to $250,000 for the structure of the home. The limit for contents coverage is up to $100,000.
- Flood insurance rates can be affordable. If you live in a moderate or low flood risk zone the premiums are affordable. All flood insurance rates are set at the federal lever and will not differ between insurance companies.
So is flood insurance right for you? You won’t know until you talk to us. Give us a call at 513-444-2100 or email us at cberry@berry-agency.com to decide if a flood policy is right for you.
