5 Myths About Flood Insurance

Post by: Kenzie on Aug 7th 2018


5 Myths About Flood Insurance

Floods are one of the most common and expensive natural disasters that you can experience, but misconceptions still exist when it comes to flood insurance. Here are five myths about flood insurance you should know when looking to purchase a policy in the event of flood damage.

Myth: Only Those Who Live in a High Risk Areas Can Buy Flood Insurance

Truth: If you live in a high-risk-flood area your mortgage company will likely require you to have flood insurance, but anyone can purchase it so long as you live in a NFIP (National Flood Insurance Program) participating community. If your community does not participate in the NFIP, you can still make a request for it to become a participant through your city council, mayor, or county commissioner's office.

Myth: If You Live in a Low Risk Area, You Don't Need Flood Insurance

Truth: If it rains in your community it can also flood. Flooding is the number one natural disaster in the United States, and it can occur anywhere, though the risk factor varies from place to place. It's a disastrous and costly damage to your home. Though you may think a small chance of flood isn't something to worry about, as little as five inches of water can cause at least $11,000 worth of property damage. Even if you live in a low risk area, it's a smart safety precaution to purchase flood insurance.

Myth: Your Homeowner's Insurance Covers Flood Insurance

Truth: The average home insurance policy doesn't cover floods. This is the reason the government backs the NFIP. If you're a homeowner looking for flood coverage you'll need to pick up separate insurance for it. Unfortunately, many homeowners don't find this out until it's too late and a flood has already occurred. There is normally a 30-day waiting period between when you buy the insurance and when it kicks in, so you'll want to think ahead and purchase a policy through an insurance agent or company.

Myth: Flood Insurance Covers Everything

Truth: Flood insurance doesn't necessarily cover every damage that can occur during a flood. Federal flood insurance policies are capped at $250,000, and for your personal possessions it caps off at $100,000. So if you have damage that adds up to $300,000, you can only recover the limit that the policy offers. If you already have flood insurance, you can buy "excess" flood insurance through a private carrier that can cover costs above the federal limits, which is a good investment if you live in a high risk area for floods.

Myth: Flood Insurance Is Only Available for Homeowners

Truth: Flood insurance is available to homeowners, renters, condo unit owners, and businesses. Homeowners and condo owners can get up to $250,000 in structural coverage and $100,000 in content coverage. Renters can get up to $100,000 in content coverage, and businesses can get up to $500,000 in structural coverage and $500,000 in content coverage.

Experiencing a flood is traumatizing enough without having to worry about how you'll pay for the costly damages. If you choose to purchase flood insurance, most or all of the damages could be payed for. But you want to be properly educated before you make the investment into flood insurance. Don't let rumors and myths choose your decisions for you!

Do you have any questions or concerns? Disaster Professionals offers 24/7 flood cleanup and disaster response experts who can answer any questions you may have. We're happy to help!