In an era consumed by a rising sea level, getting flood insurance is becoming increasingly necessary. Either for homeowners residing in flood-prone areas or those wishing to safeguard their property against adverse weather. However, navigating the complex world of flood insurance can be baffling. The following are ten questions you should ask before taking this crucial step, encapsulating the essentials you need to know.
1. What Exactly Does Flood Insurance Cover?
Flood insurance policies often cover only structural damage and not the contents of your home. It’s crucial to get clear, concise information about what is covered before commencing the transaction.
2. What Will Happen If My Home Is Completely Destroyed by a Flood?
Policies differ, and the maximum payout will differ depending on your policy. It’s essential to be prepared for worst-case scenarios.
3. What Does the Policy Not Cover?
Just as vital as knowing what your insurance covers are understanding what it excludes. Certain indirect costs caused by a flood may not be covered, such as temporary housing.
4. Are There Different Types of Flood Insurance?
There are generally two types of flood insurance policies: building coverage and personal property coverage. Your needs and circumstances will determine the appropriate one for you.
5. Is Flooding Defined Only by Natural Disasters?
Defining a flood can vary per insurance company, with some defining it as water damage caused by natural disasters and others considering any water damage as a flood.
6. Is There a Waiting Period for My Coverage to Begin?
Most flood insurance policies have a 30-day waiting period before the coverage starts. You’ll want to bear this in mind when planning your coverage.
7. Can I Obtain Flood Insurance If I Am Renting My Home?
Absolutely! Renters are just as susceptible to the effects of flooding. Thus, many insurance companies offer suitable policies for tenants.
8. Is Flood Insurance Mandatory for My Area?
If your house is in a high-risk flood zone designated by The Federal Emergency Management Agency (FEMA), then yes, it is obligatory.
9. Can I Get Flood Insurance Directly from The National Flood Insurance Program (NFIP)?
Yes, NFIP directly sells flood insurance, or you can also buy from private insurers.
10. Will My Premiums Increase If I Submit a Claim?
The answer to this question varies among different insurers. It’s crucial to have a clear understanding of this policy before making your choice.
Having flood insurance is a crucial investment in protecting what’s probably your most significant asset—your home. However, before diving headfirst into a policy, it’s essential to understand precisely what you’re getting into, and the questions above will help with just that.
