Flood insurance: Can you do without it? It is a question many homeowners ask themselves – especially those who are not required to have coverage by a mortgage lender.
The average cost of a flood insurance claim was $43,000 in 2015. Compare that to the average cost of homeowners insurance claims – about $8,000 – and you can see how going without flood protection can be a gamble.
Continue reading to find out more about flood risk, water damage, and what you can do to protect yourself against a water-related loss.
Who Needs Flood Insurance?
Flood insurance may not be required, but it is something that could protect you when you are your most vulnerable. Everyone – including those who live outside of high-risk flood zones – can be affected by flooding. It only takes a couple inches of water to cause major damage to a home. If you have 2 inches of water in a 2,000 square foot space, for example, expect to pay upwards of $20,000 on clean-up, repairs, and replacement of your personal belongings.
There is no way to determine what the future may hold, and changes to topography and weather patterns make it impossible to determine flood risk based on historical events alone. You can use these animated flood risk scenarios make it easy to identify your potential risks of flooding. You can also use the FEMA Flood Maps to assess your home’s risk of flooding based on current flood zoning.
Here at Smith Insurance and Financial Services, we recommend protecting yourself and your home against all types of water damage. Flooding is not covered under a typical homeowners insurance policy, so you will need to purchase a separate policy from the National Flood Insurance Program, or NFIP. This program provides coverage at rates based on your flood zone. You can select coverage for your home and contents, or just your personal belongings if you are a renter. Coverage becomes effective 30 days after purchasing it, so talk to one of our team members as soon as possible if you think you may want this important protection.
Sewer and Water Backup
In addition to flood insurance, we also recommend reviewing your homeowners policy to ensure you have coverage for sewer and water backup. This is one of the most common causes of water damage inside a home, and it can also be costly. In fact, the Insurance Institute for Business and Home Safety, calls drain system failures one of the top five causes of water-related losses in the U.S.
When the drain lines inside and around your home become damaged or blocked, it could prevent waste from flowing away from your property. If the blockage causes raw sewage to backup into your home, it could cost thousands of dollars to clean up, repair the damages, and replace personal belongings that were destroyed by the backup.
Though homeowners insurance covers many types of water damage, it typically excludes coverage for sewer and water backup. Contact one of our agents to add this important endorsement to your policy.
Do you have flood insurance? What about a sewer and water backup endorsement? Contact our team today for quotes on these important types of coverage.