The short answer is no, standard home insurance does not include flood insurance. That may come as a shock to some of you, but what is even more surprising is that most home owners don’t know that. This simple confusion can cause financial ruin due to unexpected damage. Avoiding this catastrophe can be easy if you know who should have flood insurance, what flood insurance will cover, and where to get flood insurance.
Who Should Have Flood Insurance
If your home is located in a floodplain you must have flood insurance in order to qualify for a loan. You probably already know this if you own a home with this restriction or are in the process of buying one. If you don’t know or are confused about the process, check out FEMA’s Flood Smartwebsite for more information.
It’s important to know that these designated flood zones can change constantly. This means that checking the status of your home regularly is vital to ensure that you have the protection you need.
Living in a flood zone shouldn’t be your only determining factor in purchasing flood insurance. The federal government determines these flood zones “according to frequency and severity of flooding.” (Flood Elevation Services) The problem is, the group specified doesn’t encompass everyone who could be flooded- only the ones who will have the most severe damage from a flood.
As we’ve seen in recent days with Hurricane Harvey, those flood zones didn’t cover everyone who suffered catastrophic losses. Over 40,000 Houstonians lost everything they had and had never been warned that they were even at risk for floods. The average cost of a flood insurance claim is $39,000. Could your family afford that without losing your financial stability?
How to Get Flood Insurance
The market for flood insurance is actually quite small, and after major flooding events in the United States, the federal government decided to step in. They’ve created The National Flood Insurance Programas a branch of FEMA.
While good in theory, this program has begun to fail. The premiums they charge are too low to pay for the claims that are being made. While this might seem like a plus now, it’s a possibility that claims will not be paid out and people who thought they had full coverage will be left with nothing.
This is why it’s important to shop with independent insurance companies. They have the ability to find you the best rates with the most reliable companies. This means that you will never be left alone when you need help the most.
To get an idea of the cost of flood insurance, ask us for a quote! It might be a lot less than you think.
What Flood Insurance Will Cover
The coverage offered by the National Flood Insurance Program comes in two varieties: personal property and structure insurance. The personal property insurance only covers up to $100,000 and the home insurance only covers up to $250,000. Both have a deductible between $500 and $5000.
If you choose to use the federal government for insurance but need more coverage than that you can then go to an Independent Insurance Agency to get extended coverage. FEMA does not offer anything else. This process can get complicated and confusing.
Going directly to an independent agency, coverage is customized to the client. We are committed to finding exactly what kind of coverage you want at the price you need.
No Time to Wait
It’s important to know that all flood insurance policies have a 30 day waiting period before the policy is implemented. This means you can’t wait to purchase insurance until you see a storm headed your way or a hurricane brewing in the ocean.
In order to protect the ones you love and your financial security you must purchase insurance as soon as possible. You don’t know when the next catastrophe will happen and you don’t want to regret something that can save your future and your livelihood.
How to get started with your quote
Every home is unique and therefore requires a carefully crafted policy.
If you’d like us to review your current policy and provide you with no obligation quotes, call our office, or see our Quotes page to get the process started.
Either way, we make the process super simple!
We serve the North Mississippi area, including towns like Olive Branch and Southaven, including Desoto County, Tate County, and Lafayette County.