6 Myths About Flood Insurance
Floods can be a fact of life for people who are far away from any sort of ocean or river. Rapid rainfalls can quickly lead to flash floods that can damage a home or surrounding property.
Floods can also be a problem even after a relatively mild and weak storm if you do not have a good drainage system around your home and surrounding property.
Many homeowners choose to purchase flood insurance, especially if they live near a large body of water, so they can get assistance with repairs or a total rebuild after a flood. However, there are a lot of myths about flood insurance, so keep reading to get educated on what the truth really is.
Myth: Everyone in a Flood-Prone Area Must Get Insurance
Homeowners are only required to buy flood insurance if they meet a set of criteria.
They must purchase it if their home is in a flood hazard area (1% chance of a flood each year), if the community is involved in the National Flood Insurance Program, and if they purchased or refinanced a home through a federally regulated institution. Homeowners that do not meet this criteria are not required to buy insurance.
Myth: Insurance Is Costly
Contrary to many beliefs, flood insurance is not always expensive. The price will depend on your location, home value, and height off the ground.
Click here to learn why it’s important to review policies every year!
Myth: Taxpayers Pay The Federal Flood Insurance Bill
The National Flood Insurance Program does not spend any tax dollars. The government makes sure the premium rates are set high enough as to cover any claims and operating expenses in a normal year. If a year is particularly bad, then the treasury lends money and just charges an interest rate on top of the loan. The program works to maintain solvency by boosting the accuracy of flooding maps and easing away from subsidies.
Myth: Insurance Is Just For Beach Homes
Many houses that have flood insurance, especially those in the National Flood Insurance Program, are actually away from the oceanside. You should always purchase flood insurance if you can because flood-related damages are not covered by normal homeowners insurance.
Myth: Floods Don’t Really Cause a Lot of Damage
Even though tornadoes and hurricanes often get big headlines, floods actually create more damage in the United States than any other type of natural disaster.
Remember, floods can happen anywhere. They usually occur during a storm where a lake or river rises. Additionally, floods can happen due to the actions and activities of humans, like during construction of roads and houses, if the proper precautions are not taken.
Overall, there are a lot of myths about floods and flood insurance. Flooding is a serious risk to any home and the possessions inside, so smart homeowners will secure insurance to be prepared. Floods can happen anywhere, and can often strike with little warning, so be sure that any insurance adequately accounts for the value of your home and possessions.
Do you have a question about how flood insurance can help recover damage of a home and its possessions? Click here to contact Partners Direct Insurance Services today!
Courtesy of Cuselleration
