5 Common Myths About Flood Insurance Debunked

Even one inch of standing water can cause serious damage to your house and possessions. Many people believe that their homeowner’s policy covers flooding. However, the National Flood Insurance Program offers separate insurance to both homeowners and renters.

FEMA states that disaster assistance usually covers only a small portion of damages. Therefore, a flood insurance plan is essential.

Only occasionally do floods occur.

Images of cars and homes floating on the road are common in the United States. Flooding is not a coastal phenomenon. It can happen anywhere in the United States due to storm surges, overflowing rivers, and melting snow and rain.

Flooding is the most frequent and expensive natural disaster affecting property owners in the United States. Many people think that flood insurance is optional. However, a National Flood Insurance Program policy can protect you and your business from the financial effects of flooding.

Federal disaster assistance can cover your losses. FACT: Only 50 percent of floods result in federal disaster declarations, and government assistance is usually a loan that must be repaid.

A car can easily float on just two feet of water. Even if you do not live in a flooding plain, it is important to have flood coverage.

Flood insurance can be expensive.

The National Flood Insurance Program makes flood insurance available to all homeowners, tenants, and business owners. The National Flood Insurance Program will cover them against damage caused by floods. The insurance cost will depend on many factors, such as the amount covered and where you reside.

The NFIP offers up to $250,000 in coverage for the structure of your home and any built-in systems, such as plumbing or electrical. The NFIP provides a range of up to $100,000 in content. The amount of coverage you select, and the deductible will affect your premiums.

Even though living in an area that is not prone to flooding may give the impression that your house is safe, flooding can still affect any home. Your home and property can sustain serious harm from even little floods. Flood damage to condos, residences, and rental properties is frequently not covered by typical insurance plans. A separate South Carolina flood insurance coverage is required. NFIP offers a preferred-risk option for homes in zones of low or moderate flood risk. The rates for the range of the dwelling and contents start at less than $100 per annum.

Flood Insurance is not required.

Flood insurance is often viewed as optional, particularly for low-risk homes. Even properties in low- to moderate-risk zones can suffer losses and should be covered by a policy. FEMA reports that 20 percent of all flood insurance claims come from these areas.

Flooding and damage caused by flooding are not covered under homeowners’ or renters’ insurance policies. A separate flood policy is required. This type of insurance is important for property owners because even an inch of flood water can cause up to $25,000 in damage.

The National Flood Insurance Program provides flood insurance at affordable rates for homeowners, tenants, and businesses in participating communities. The National Flood Insurance Program (NFIP) works like other insurance policies and helps protect against financial losses caused by floods. This includes the cost of repairing or reconstructing the building and replacing personal items.

While the NFIP is available nationwide, homeowners can also shop around to find private insurers that offer the same or better options at lower premiums than the NFIP. Reducing flooding risks, such as elevating a house or installing flood vents, may save on premiums.

Flood insurance isn’t necessary.

Despite floods being the most common natural disaster in the country, some property owners disregard the need for affordable protection. Unfortunately, these same property owners may find out too late that their homeowner’s insurance policy doesn’t cover flooding or that they must include a low-cost Preferred Risk Policy from the National Flood Insurance Program (NFIP).

Homeowners, condo unit owners and renters can all purchase NFIP-backed policies to help protect against this costly natural disaster. If a community participates in the NFIP, nearly everyone can buy a policy for less than $50 annually.

Just a few inches of water can cause thousands of dollars worth of damage to homes and other structures, which is why many mortgage lenders require that homeowners obtain flood insurance to purchase their homes. However, many real estate agents and borrowers only realize that their lender requires them to buy flood insurance once in escrow. This can be an expensive mistake. A flood insurance policy is a great investment for peace of mind.

Flood insurance isn’t a necessity.

The term “100-year flood” has been used to scare people into not buying flood insurance, but that’s misleading. Flooding is the most common natural disaster in the United States, and it can happen in any area, whether it’s from a storm surge in Florida, an overflowing river in Nebraska or a bomb cyclone in the Midwest.

A flood policy is necessary, even in areas that don’t experience much flooding. Even a few inches of water can cause serious damage to structures and their contents, and it can take months to repair and rebuild.

Without a flood insurance policy, relief from flooded homes or businesses only comes in the form of federal disaster assistance loans – which have to be paid back over time. Those loans are not enough to cover all the damage from the most severe flood events, so homeowners and business owners must consider getting an NFIP Preferred Risk Policy or private market coverage with higher limits. Mortgage lenders must require flood insurance when lending money for properties in Special Flood Hazard Areas.