Are You Insured For Floods?

Flood insurance is the only homeowner insurance that will cover for your home destroyed or damaged by floods. Flood insurance maybe one of the most forgotten homeowner insurance.

Contrary to this, there is a higher probability that one’s home can be damaged by flood more than fire. Flooding is on the top list of natural disasters in the United States of America. A decade of flooding has caused American homes, billions of dollars. This is reason enough not to forget flood insurance which is commonly not packaged with other types of policies.

Flood Coverage

A family residence can be covered for up to $250,000 if destroyed by flood plus around $100,000 for content coverage. Business owners can get half a million of coverage for their buildings and another $500,000 for the contents.

Some lenders also automatically place a home loan under a homeowner insurance policy. This is more of a protection for their institution, and this lender placed insurance may be 3 or 4 times more expensive if you will look for the coverage yourself. A flood insurance availed together with the home loan doesn’t have the 30 day waiting period.

You also have to determine the flood zoning that your property is in so you will know if you are on a low or high risk flood zone.

Flood homeowner insurance premiums are calculated depending on the elevation of a structure or home. This is determined by a license surveyor. Cheaper premiums are made available to those property owners whose properties are above the base of flood levels and who doesn’t have a basement or bunker.