Why is Flood Insurance Important?
Floods are one of the most common and costly natural disasters in the United States. According to the National Flood Insurance Program (NFIP), floods occur in all 50 states and can cause extensive damage to homes, businesses, and communities.
While flood insurance is not required by law, it is strongly recommended for homeowners, renters, and business owners in flood-prone areas. In fact, flood insurance is often required by lenders if you live in a high-risk flood zone.
If you’re considering purchasing flood insurance, it’s important to understand what it covers and how it can benefit you. In this blog post, we’ll explore the key reasons why flood insurance is important.
Benefits of Flood Insurance
Flood insurance has many benefits that homeowners do not think of right away. However, flood insurance can actually help protect your home in more instances than you would think. The following are some of the most important benefits of owning flood insurance.
Protects from Flood Damage
Floods can happen anywhere, at any time. They are one of the most common natural disasters in the United States, and can cause a lot of damage to your home. Flood damage has many causes. For example, your home can flood due to sewer backups, over-saturated ground from rain, faulty drainage systems in your home, and natural disasters – like hurricanes.
That’s why flood insurance is so important. It protects your home from flood damage, and can help you to avoid financial hardship if your home is flooded and you do not have insurance. So, if any of these things happen to your home, your flood insurance will cover the damages.
Covers Cost of Rebuilding Flooded Home
Flood insurance is important because it covers the cost of rebuilding your home if it is damaged by a flood. Without flood insurance, you would have to pay for all of the repairs yourself, which could be very expensive.
With that said, the financial implications of flood damage in your home are not cheap. In fact, just one inch of water in your home can cost you up to $25,000 in damages, on average. This is why it’s so important to make sure that you have your home covered by floor insurance.
Not only will flood insurance cover the cost of water damage to your home, you can also use the money to repair or replace the damaged pieces. Repairing your home after damage can be just as expensive as the damage itself.
Helps Avoid Financial Hardship
If your home is flooded and you do not have flood insurance, you will have to pay for all of the repairs yourself. This can be a lot of money, and it can cause financial hardship for you and your family. That’s why flood insurance is so important; it can help you to avoid this type of hardship.
Private Flood Insurance vs. NFIP
When it comes to flood insurance, there is private insurance as well as insurance through the National Flood Insurance Program (NFIP). The NFIP is funded by the government and accounts for most flood insurance policies in the country. These policies do not have much room for customization; the government has already set the structure for it.
When you purchase your flood insurance through a private insurance provider, you have more room to customize the policy to your needs. For example, the NFIP only provides coverage up to $250,000 – through a private insurance company, you are able to get a hold of a larger policy. Typically, private insurance offers up to $1,000,000 in coverage.
You are also more likely to find yourself paying a more appropriate premium with private flood insurance, as they will assess the flood risk for the property.
Does Homeowners Insurance Cover Flooding?
One of the most important reasons that your home needs flood insurance is because a homeowners policy will most likely not cover any type of flooding or water damage. Flooding and water damage does not only occur when there is a natural disaster, like a hurricane. It can happen from regular storms that cause over-saturated grounds, or when rivers, ponds, lakes, and other things overflow.
Additionally, if your home has any sewer backup or damage from other maintenance issues (such as a broken toilet that overflows and damages the floor), your homeowners insurance likely will not cover this. You will want a flood insurance policy to ensure that you are covered when it comes to replacing something that was damaged by water.
Contact Robinson & Stith About a Flood Insurance Policy
In conclusion, flood insurance is important because it protects your home from flood damage, covers the cost of rebuilding your home if it is damaged by a flood, and helps you to avoid financial hardship if your home is flooded and you do not have insurance. If you live in an area that is prone to flooding, such as the Crystal Coast in North Carolina, or if you simply want to be prepared for the worst, make sure you have flood insurance. It could save you a lot of money and hassle in the long run.
If you are looking for flood insurance coverage near the New Bern, North Carolina area, contact us here at Robinson & Stith! We are able to help you find the most affordable flood insurance coverage that will keep your home protected during any flooding disasters.