Why flood insurance is important even if you don’t live in a flood-prone area
According to the US disaster list, a flood is one of the most dangerous and devastating natural disasters in the country, so it is highly recommended that homeowners carry flood insurance policies. Many property owners find out too late and risk financial ruin once a flood has damaged their property.
Importance of flood insurance
If you live in an area prone to flooding, then you already understand the importance of having a flood policy and you probably have coverage. However, people who live in areas that are considered flood-safe should also consider getting coverage.
According to the US Climate Communication Science and Outreach Report on Climate Change, a minor change in global temperature can lead to drastic changes in global climate. The report highlights that extreme weather changes can cause severe droughts, rains, storms and floods in different cities. As a result, heavy rains and flooding would be more frequent and intense.
Given the report, even if an area is marked as flood-proof, it’s a smart move to sign up for flood insurance. Most private insurance providers also offer conditional flood insurance. For example, if a water pipe bursts due to a fire, your flood insurance will cover property damage and replacement costs.
Home and Property Insurance vs. Flood Insurance
Many people misunderstand that a specific flood policy, a separate policy, is needed to cover floods above and beyond the standard for homeowners and commercial property. Residential and commercial property insurance provides coverage for structural failure, fire, building damage, water leaks, and the like. However, flood insurance provides coverage against damage caused by rising water levels.
Why choose private insurance?
The national insurance program offers a number of benefits, which is ideal if you are only opting for basic insurance coverage. However, if you want an insurance package that suits your needs, choosing private insurance may be a better idea. The benefits of private insurance include:
• Building coverage (including foundations)
• Coverage of HVAC, plumbing systems and electrical systems
• Coverage of furniture, clothing and kitchen utensils such as microwaves and dishwashers.
• Coverages for possessions including temporarily installed rugs, portable air conditioners, removable microwaves, refrigerators and more.
• Coverage of related expenses, including temporary housing
Flood insurance is extremely important in light of changing weather conditions and the financial risks associated with not having flood insurance. Talk to your agent or border to determine what coverage you need.