You may not think that you live in a flood zone, but the truth is that you can lives miles away from water and still be at risk for flooding. In fact, nearly 25 percent of flood insurance claims come from moderate-to-low-risk areas. Floods aren’t always caused by major bodies of water or large storms. Anything can cause a flood from a new development to a slow-moving rainstorm. Floods are the most common natural disaster in the United States, yet many Americans don’t know that floods aren’t generally covered under most home insurance policies. That’s why it is so important to find out if you are covered or not.

Can you do without it?

Floor insurance isn’t like car insurance; it isn’t required just because you own property. Sometimes it is a condition of your mortgage, but a lot of the time you aren’t obligated to purchase it. So you might be asking if or why you need it when it isn’t a necessary requirement. It’s important to look at the facts when it comes to protecting your home and your family. Even if you are in a low-risk area, a minimal flood can have disastrous financial consequences. Unless you are certain that you could financially take care of the costs a flood might bring, do not take the decision about coverage lightly. It’s essential to get estimates for potential damage and consult an expert to see if the costs are feasible.

Benefits of having flood insurance

Just a few inches of water can cost thousands of dollars in damage to walls, floor, furniture, carpets, and appliances. Flood insurance can help you avoid those financial consequences. In addition to providing building and possession coverage, flood insurance policies usually cover other flood related expenses, which could include the costs of food and hotel stay while your home is being repaired. Flood insurance also gives you peace of mind. You may fear for the safety of your home on a regular basis, but making sure that you are protected by insurance in case of disaster is the best way to make you feel safe.

The bottom line

No matter how well you plan for a flood by either putting money aside or already having a financial footing, the costs may be even more than you have anticipated. This is why it may be a better idea to purchase coverage than to go without it. If you live in a moderate to low risk area it could cost you less than your monthly cell phone bill to purchase a flood policy. This could help you save a bundle if your home were to sustain damage.

Resources:

http://www.usatoday.com/story/money/personalfinance/2014/07/12/flood-insurance-homeowners/12148715/

http://www.finweb.com/insurance/benefits-of-homeowners-flood-insurance.html#axzz4OJbXME4a