Floods can cause devastating damage to your home and property. There are many causes of floods, including heavy rains, overflowing bodies of water, blocked drainage systems or rapid snowmelt. Regardless of what may cause floodwater to enter your home, even a small amount may lead to significant damage and costly financial losses. With that in mind, you must conduct due diligence to understand, acquire and maintain suitable flood insurance.
How Does Flood Insurance Differ From Standard Homeowners Insurance?
Usually, standard homeowners insurance policies do not cover losses caused by floods. Adding an endorsement for flood coverage or purchasing a separate flood insurance policy is advisable.
By securing flood insurance, you can ensure crucial financial protection for your property, including the following:
- Structures—This may include your home’s foundations, walls and roof, as well as plumbing systems, electrical wiring and attached fixtures.
- Contents—This includes many of your belongings, such as electronics, furniture and clothing. Possessions of significant value, such as jewelry and fine art, may require additional coverage.
How Are Flood Insurance Premiums Determined?
Like many types of insurance, the cost of adequate flood coverage may vary significantly, even among homeowners who live in similar areas. Insurance companies must thoroughly assess many factors when quoting you a price for suitable coverage. This analysis generally includes consideration of the following:
- Flood risk (e.g., elevation, proximity to bodies of water, flood history)
- Property details (e.g., building age, materials used)
- Policy details (e.g., coverages, endorsements, deductibles, limits)
Does Flood Insurance Cover Temporary Living Expenses?
The potential financial ramifications of floods may stem from damage to your home and property and temporary displacement. If floods make your home temporarily uninhabitable and you are forced to vacate the premises, you may incur significant costs, such as hotel lodging and restaurant meals. Unfortunately, standard flood insurance generally does not include coverage for these expenses.
Get the Right Coverage
Even if your home is not located in an area regularly prone to floods, you should strongly consider acquiring flood insurance. Standard insurance policies generally exclude flood coverage, so you may be vulnerable to potentially devastating out-of-pocket losses.
We’re here to help. Contact the knowledgeable insurance professionals at The Bush Agency today to learn more about flood insurance and ensure your home and family are adequately covered.