Flood Insurance: Why It’s More Important Than You Think

Homeowners Insurance
May 20, 2021
front view of front door of flooded house with sand bags

Flood insurance is usually a lower priority for homeowners. Unless you live in a high-risk flood area, it’s easy to think that this optional insurance is unnecessary.

But the truth is that almost every home is at greater risk of flooding than the owners realize. And the ongoing effects of climate change make that risk grow larger every year.

Ultimately, every homeowner should consider protecting their home with flood insurance. Keep reading to learn exactly why this form of insurance is so important!

You Are At More Risk Than You Think

Why do you think most homeowners do not purchase flood insurance? The answer is simple: they don’t think their home is really at risk.

Typically, that risk assessment is based on how close you are to bodies of water and the general elevation of your home. But flooding rain and hurricanes mean that any home could easily be flooded, especially during the fall.

Don’t believe it? Research from the National Flood Insurance Program found that 20% of flood insurance claims each year come from homeowners who live in a low-risk area for flooding.

In other words, nobody’s risk of flooding is as low as they imagine. And only flood insurance can provide the kind of protection you need from the elements.

Protection From the Elements

One of the best things about flood insurance is that it covers more events than you might imagine. This includes things like the overflow of inland or coastal water due to a buildup of rain (a very common cause of flooding).

It also protects your home against runoff rainwater from nearby roads. Even if you don’t live close to a body of water, the threat of this runoff means that the threat of flooding is very real.

Flood insurance protects against mudflows. And it also provides protection against collapsing land along the shore, making this kind of insurance a “must-have” for anyone living in a coastal home.

What Belongings Will Flood Insurance Protect?

Every homeowner knows that insurance has its own “fine print.” And it’s important to check that fine print so that you know exactly what is and is not covered by your policy.

Fortunately, you can count on flood insurance to cover most of your belongings. This includes things like clothing, electronics, furniture, and home appliances. It also provides protection for your heating and air, carpeting, plumbing, and even the food inside your refrigerator or freezer!

The coverage above is covered on top of protecting the building and its foundation. So no matter how much or how little damage the flooding causes, you can count on flood insurance to take care of everything.

Existing Insurance Won’t Cover You

Another reason many homeowners hesitate to take out flood insurance is simple. It’s because they think that their existing homeowner’s insurance will offer some protection against flooding.

Unfortunately, most traditional insurance programs offer no protection at all against flooding by default. Instead, you must take out a separate rider for this kind of protection.

However, taking on additional insurance means an additional cost to your monthly insurance premium. But that small additional cost pales in comparison to the potential damage that flooding can do.

A Little Water Equals a Lot of Damage

close up of flooded kitchen floor in house with insurance

What do you think about when you imagine your home flooding? In all likelihood, there will be only mild flooding instead of major structural damage. And you might think that mild flooding can only do so much damage to your home.

However, it is staggering how much damage a little bit of flooding can have. For example, it only takes one inch or so of flooding to cause $20,000-$30,000 in damage.

If that amount seems exorbitant, just think about everything the water touches. Replacing any carpeting can easily cost thousands of dollars on its own. And any ground-level electronics, appliances, and furniture may also be ruined by the flooding water.

Still, it’s easy for homeowners to think they shouldn’t pay extra on their insurance each month for something that is not seriously likely to happen. However, compared to the potential damage of a flood, you may find the cost of adding flood insurance to be surprisingly affordable!

Surprisingly Affordable

On average, homeowners with flood insurance spend about $707 on that insurance. And if you were to break that annual amount down into monthly payments, the average person with flood insurance is paying a little less than $59 per month for it.

The exact amount that you pay depends on the property you have and the level of coverage you want. But the fact that you can provide robust flood protection for your home and your belongings for less than $2 a day makes this a great investment for future security.

And, of course, a great investment in your peace of mind!

You Can’t Count On Federal Assistance

Previously, we covered the fact that typical homeowner’s insurance programs do not cover flood damage. However, some homeowners still don’t think they need flood insurance because they believe they will receive some form of federal assistance.

However, such assistance is only available if the President of the United States declares the affected area to be a disaster area. If there is no declaration, then you will not receive any federal money.

And even if there is a declaration and you receive money, you are unlikely to receive anything more than a $5,000 FEMA grant. Now ask yourself: would $5,000 be enough to repair or replace everything in your home that may be damaged by a flood?

Ultimately, flood insurance provides greater and more reliable protection, and it’s the single best way to protect your home and belongings against a flood.

Get Flood Insurance Today

Now you know why flood insurance is so important. But do you know where you can get the best flood insurance today?

Here at Vern Fonk, we specialize in protecting homes against flooding waters. To speak with an agent today, come visit us at your nearest local office. Or feel free to grab your phone and give us a call at 1-800-588-0841!