Flooding isn’t just a coastal or hurricane-prone issue. It can happen anywhere, anytime. Let’s dive into whether you actually need flood insurance and how you can get it.
Who needs flood insurance?
Many people assume they do not need flood insurance because they do not live near a body of water. This is not the case. Over 25% of flood claims come from properties outside high-risk flood zones. You should especially consider flood insurance if you are a:
- Homeowner: If you live in a high-risk flood area and have a federally backed mortgage, flood insurance is required. Even if it is not required, it can still be a smart investment.
- Renter: Your landlord’s policy covers the building, but not your belongings. A renter’s flood policy can protect your furniture, electronics, and valuables.
- Business Owner: Floods lead to thousands of dollars in out-of-pocket costs in repairs and replacements. A commercial flood policy can help pay for these costs.
What does flood insurance cover?
Flood insurance is designed to cover your property and belongings if they are damaged due to a flood. Coverage is split into two main parts:
- Building coverage: Helps protect the physical structure of your property, electrical and plumbing systems, central heating and cooling systems, built-in appliances, and detached garages.
- Personal property coverage: Helps protect your furniture and electronics, clothing, portable appliances, equipment, food freezers, and certain valuables.
Where can I buy flood insurance?
Flood insurance is not offered with your standard home or commercial policies. Separate flood insurance is offered through the National Flood Insurance Program (NFIP) or through private insurers depending on where you live. Private insurers often offer preferred risk flood insurance policies that can be a more affordable alternative to the NFIP. It is available for properties in low to moderate flood risk areas, offering the same coverage as a standard flood insurance policy but at a reduced rate.
Is there a waiting period for my coverage to begin?
Yes, NFIP policies have a 30-day waiting period before coverage becomes effective. However, if flood insurance is required by your mortgage company for settlement, there is no waiting period. Private insurers may have shorter waiting periods, but it is risky to wait until the last minute. It is important not to wait until a storm is on the horizon to get coverage.
Let’s talk
The worst time to realize you need flood insurance is after your home is already underwater. Don’t wait until it’s too late. Contact one of our experienced Avery Hall agents today at 410-742-5111 for our Salisbury office, 302-684-3413 for Milton, and 302-536-9470 for our Seaford office for a free consultation.