flood insurance

5 Compelling Reasons Why You Need Flood insurance

According to the National Weather Service, in the year 2019, 87 people have died in the United States due to flooding. This number was reported until Oct 2019 so the weather department is expecting some more fatalities this year.

I am sharing this information to let you know how bad the situation has gotten due to frequent storms and hurricanes in the eastern part of the nation. It has become imperative to have flood insurance coverage for your home if you reside in areas like Massachusetts, Louisiana, Florida, and South Carolina.

Here are the 5 compelling reasons why you need flood insurance

1) Flood insurance is required by law to purchase a home in a flood-prone area

The government hasn’t yet made it mandatory to have flood insurance coverage–in any of the states. But, you do need it before borrowing money to buy a house in a flood-prone area. Particularly, if the lender is an FDIC backed bank. A lender will have to incur a heavy penalty if they choose not to abide by this rule.

2) A standard home insurance does not cover losses from flooding

This is another compelling reason to purchase flood insurance. A standard home insurance covers your dwelling, personal property, and injury or damages to your or someone else’s property, but it does not provide earthquake or flood insurance coverage. To secure yourself from damages caused to your home due to flooding, you are obliged to buy additional coverage.

3) Not having a flood insurance policy is a gamble

Whether you live in a flood-prone zone or not, your home can always suffer damages due to rains. What if it rained for a few days in a row flooding the entire city? There have been plenty of instances where cities were streets were submerged underwater for days. Such rain could easily damage your home or the contents inside it. Why take such a huge risk?

4) It won’t cost you a fortune

According to a report by Kiplinger, the average cost of a policy is about $700 a year. For just $59 a month, your insurance company will cover you for all the damages incurred by your home during a flood. By not purchasing flood insurance, you have a lot to lose.

5) 20-25% of all economic losses occur in areas not designated as flood-prone

This stat was mentioned in a training manual published by the US weather department. The weather department blames urban drainage for the floods caused in non-flood-prone areas. They also concluded that the flooding occurred by the flaws in urban drainage systems happens more quickly and usually to greater depths. So, not residing in a flood-prone zone should not be an excuse for not having a flood insurance policy.

Conclusion

I hope the above post helped you understand the importance of upgrading your home insurance with flood insurance coverage. Whether you live in a flood-prone zone or not, you cannot risk losing your investment due to a natural calamity.

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