Flood insurance is a policy that covers damage from flooding to your home. This type of policy is extremely important because a homeowners insurance policy covers very little in the way of flood damage. Many property owners are unaware of this. Of course, if you live in an area that is high risk for flooding, your mortgage lender likely requires you to have this insurance, but for the rest of the homeowners in the country, you may not know why you need this insurance. The following are a few things that may help you decide on its importance to you.
This insurance is provided by the government
Because insuring against flood damage carries such a high risk, insurance companies will not underwrite these policies. Flood insurance is provided by the federal government through the National Flood Insurance Program. However, you buy a policy from a private sector insurance agent that is approved to provide these policies. There are several companies to choose from, so you need to get several quotes. Prices can vary.
Flooding can happen anywhere
This type of insurance protects you from water that overflows from rivers and lakes. It also protects you from water that runs off from storms. This latter flooding is what can happen to your home, even when you are not living near a body of water. The rates for your policy will reflect the risk associated with the area of the country you live. A low risk area will not cost a lot, so you need to add this to insurance portfolio.
You can get a policy to cover personal property
Not only does a policy cover your house from flood damage, but you can get a policy that will cover your personal property as well. This is important because the damage to your personal property can often be as large or larger than the damage done to your home. These policies are usually sold separately, but you should give consideration to buying both.
At the very least, you should get a few quotes for flood insurance orlando fl to see how much it will cost. Because you never know when flooding will occur, you should purchase a policy as soon as possible.