Understanding Flood Insurance and Its Importance

Purchasing a home is a major achievement and symbolizes stability for you and your family. Each part of your house holds sentimental value, making protection vital. While standard homeowner’s insurance covers many damages, it typically excludes natural disaster events like floods. A flood is technically defined as a temporary inundation where more than two acres of land are submerged due to heavy rain or storm surges. Recognizing the risk is crucial when selecting property insurance.

To assess flood risk, visit FEMA's official website, which offers current flood zone maps and risk assessments. These resources guide you in choosing appropriate coverage based on the likelihood of flooding in your area, especially in regions prone to natural calamities. The FEMA flood map categorizes zones with mandatory or recommended insurance requirements, mainly affecting coastal and high-risk inland areas.

Flood insurance primarily covers damages to your house's structure and its contents but does not protect the land itself. The policy applies to materials used in the building—from the foundation to the roof—and inside belongings, with some coverage limits on valuables like artwork and jewelry. It's essential to review your policy carefully to understand coverage caps and exclusions, like cash, precious metals, or personal documents. For homes with basements, coverage typically includes essential systems and parts of the interior but excludes valuable items stored there.

Ensuring your property is adequately insured in flood-prone areas can protect you from significant financial loss. Stay informed about current policies and risk levels. Follow us on Facebook and Twitter for the latest updates on insurance and financial planning.