Why Is Flood Insurance Important?

Floods can wreak havoc on homes and communities. Standard homeowner’s insurance typically excludes flood-related damages, meaning that policyholders may need to augment their coverage. Flood insurance can provide homeowners with the necessary financial protection to rebuild and recover after flood disasters.

How Does Flood Insurance Work?

Flood insurance is a specialized policy designed to cover damages and losses caused by flooding. It is typically provided through the National Flood Insurance Program (NFIP) in the United States, although private insurance companies may also offer flood insurance in some areas. The NFIP is managed by the Federal Emergency Management Agency (FEMA) and aims to reduce the financial burden on taxpayers while ensuring homeowners have access to affordable flood insurance.

When you purchase flood insurance, you pay regular premiums based on your property‘s flood risk, coverage amount and location. If a flood damages your home or belongings, you can file a claim with your insurance provider. The adjuster will assess the damages and provide compensation, subject to your policy’s terms and coverage limits.

What Does Flood Insurance Cover?

Flood insurance typically covers two primary components: building coverage and contents coverage. Building coverage protects the structure of your home, including its foundation, walls, electrical systems and plumbing. Contents coverage, however, includes compensation for damaged or destroyed personal belongings such as furniture, electronics and clothing.

It is essential to review your policy carefully, as certain items, such as jewelry and artwork, may require additional coverage beyond the standard policy limits. Additionally, some properties, such as basements or areas below the lowest elevated floor, may have limited coverage, so it’s vital to understand the specifics of your policy.

Who Should Get Flood Insurance?

Contrary to popular belief, flood insurance covers more than just homeowners in high-risk flood zones. While those residing in FEMA-designated Special Flood Hazard Areas (SFHA) are typically required to have flood insurance to secure mortgages, flooding can occur in many regions beyond these zones.

It is essential for all homeowners, especially those in moderate-to-low-risk areas, to assess their flood risk based on local topography, historical flood data and climate patterns. Flooding can result from heavy rainfall, snowmelt, hurricanes or other disasters. Given the potentially catastrophic financial impact of floods, anyone with property near bodies of water, coastal areas or regions prone to heavy precipitation should consider obtaining flood insurance.

How Much Flood Insurance Do I Need?

Determining the appropriate amount of flood insurance depends on various factors, including the value of your property and belongings, local flood risk and potential rebuild costs. Your building coverage should be enough to pay for a complete rebuild of your home, and contents coverage should be sufficient to replace or repair essential and valuable belongings.

Get the Right Coverage

With over 60 years of service to homeowners, families and businesses in the Lancaster and Kershaw areas, the dedicated staff at Williams Financial Services has the knowledge and experience to ensure you have adequate flood insurance. Visit our website or call one of our offices today to get a quote and build your coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.