7 Myths and Facts About Flood Insurance
Homeowners and home buyers should clearly understand flood insurance facts to avoid confusion in case of a flood. Not all flood plans cover every type of flood, so you must be careful what you sign up for. Be aware of the following common flood insurance myths to help clear costly misunderstandings.
Myth #1: Nobody Can Buy Flood Insurance in a Flood Zone
The truth is you can buy flood insurance any place where the community participates in the National Flood Insurance program. It’s been around for decades for people who live in high-risk “Special Flood Zone Areas.” Homeowners who live in these zones make up three-quarters of the market for these insurance plans.
Under federal law, mortgage lenders must require flood coverage for home buyers who purchase properties in high-risk zones.
Myth #2: Nobody Can Buy Flood Insurance Outside of a Flood Zone
Once again, any homeowner can buy National Flood Insurance if they live in a community that participates in the federal plan. About 20 to 25 percent of people who tap into this resource live outside flood plains. Those who live in lower-risk areas pay about $500 per year for flood insurance.
Myth #3: Federal Disaster Assistance Automatically Pays for Flood Damage
A flooded area must first be declared a federal disaster area for the community to be eligible for federal assistance. Less than half of flooding incidents tend to meet these criteria. If you lack flood insurance, you will need to buy flood coverage to meet federal relief requirements.
Myth #4: Only Homeowners in High-Flood-Risk Zones Need Flood Coverage
You should consider flood insurance regardless of where you live because flooding can happen in the most unexpected places. All it takes is one strong storm for bodies of water to overflow and flood an entire town, destroying millions in assets.
Myth #5: Standard Homeowners Insurance Policies Already Cover Flooding
Many homeowners insurance plans need more complete or even partial coverage for flooding. A standard policy may pay for broken pipes, but usually not for large natural disasters. You’ll need a flood coverage endorsement.
Myth #6: Flood Insurance Is Only Available for Homeowners
Flood insurance is available for many structures beyond homes, including condominiums and commercial properties like apartment complexes.
Myth #7: You Can’t Buy Flood Insurance If Your Property Has Been Flooded
It’s still possible to purchase flood insurance after your home or other living space is flooded if your community enrolls in the National Flood Insurance Program.
Protect Your Assets with the Right Coverage
A flood insurance endorsement to your existing homeowners policy can help protect your assets more effectively in case of flooding. Since flooding can happen in any region due to extreme weather, having the right flood coverage in place is imperative. If you have any further questions about flood coverage, contact us at Remland Insurance today or call us at (714) 532-3341) for friendly assistance.
