What is Covered By Flood Insurance?

If you own a home and a car, you probably have auto insurance and homeowners insurance to protect you against property damage and liability. That may be a good start, but did you know that many people can benefit by purchasing separate flood insurance?

Is My Homeowner’s Policy Good Enough?

A standard homeowner’s policy does not cover flood damage that originates outside your home. Your policy probably covers you if a pipe bursts and floods your living room, but it will not cover you if a river overflows or a tremendous rainstorm deposits two feet of mud and water throughout your house.

Who Should Buy Flood Insurance?

If you live in an area prone to flooding, you should buy flood insurance. FEMA has maps that designate flood zones and if you fall into one of them, you not only would be wise to buy flood insurance, but you may actually be forced to buy it by your mortgage holder.

How Much Does it Cost?

There is some good news when it comes to paying for flood insurance. Depending upon where you live and how likely your area is to flood, a policy can cost as little as a few hundred dollars to a little more than $1,000.

What Does a Flood Insurance Policy Cover?

A flood insurance policy has two parts. The first part covers damage to real property, your house. The second part covers personal property, or the contents of your house. You can choose to have only coverage for real property or you can also insure your personal property. A higher deductible will lower your premium.

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