Does my homeowner’s insurance cover floods?
Floods are one of the most common natural occurrences in the United States and your home does not necessarily have to be in a high risk area to be affected by flooding. According to statistics by the National Flood Insurance Program, there is a 26% likelihood of a flood occurring during a 30 year mortgage term vs. only a 9% chance of a house fire. Your typical homeowner’s insurance policy does not cover damage from floods. This is a fact that many homeowners are unaware of until the flood and damage has occurred. You will have to obtain a separate flood insurance policy offered by the National Flood Insurance Program.
This type of insurance is usually referred to as “single peril” policy. If you reside in a designated flood prone area, then you are required by law to obtain flood insurance. Flood hazard maps are available to determine an area’s risk. Do not think you won’t be affected by not living in high risk areas. Almost 25 % of the NFIP’s claims for flood insurance are filed in areas with only a low to medium flood risk. If a storm drain or sewer overflows, unexpected floods can occur in any area, whether high risk or low risk.
A homeowner’s insurance policy only covers damage such as sudden burst in water pipes; not flood damage. If you experience flood damage with no insurance, then you will definitely incur colossal losses.
It is imperative to be equipped with protection from floods that occur with storms, hurricanes and heavy rains. Homeowners should not assume that if their home is not in a high risk area, then they will not be affected by floods. You can obtain proper flood damage insurance by visiting http://www.floodsmart.gov. Being equipped with the right type of policy will help you pay for repairing damage done by flooding.