What does flood insurance cover? The basics explained
Being a homeowner comes with many benefits, but it comes with many responsibilities as well. You need to prepare for every possible worst-case scenario to protect one of the biggest investments you’ll make in your lifetime.
Having and understanding the proper forms of insurance, such as flood insurance, will be essential. What does flood insurance cover? If you’re a new homeowner, you might not have yet gotten familiar with this form of insurance.
It’s important to understand the extent of flood insurance coverage if you’re about to take out a policy, especially if your house is over 100 years old. You may need to research the best homeowners insurance for older homes to make sure you have flood coverage. Read on, and we’ll walk you through what you need to know.
What Does Flood Insurance Cover?
It’s important to understand the coverage possibilities of different flood insurance policies when looking to secure coverage. Failure to do so could leave you covering costs that you were not anticipating.
The most important distinction to make is that flood insurance doesn’t actually cover all flood-related damage. That might sound hard to believe, but it’s true: flood insurance will cover some elements of your home, but it won’t cover damages to your personal property.
Most people secure their flood insurance through FEMA and the federal government. These policies cover your home, its foundation, and the plumbing and HVAC systems you have installed. Certain appliances and features of your home might also be covered depending on the plan you get.
However, clothing, portable appliances, and nearly all personal possessions will not be covered by your insurance. If your home floods and these items are taken and damaged, you’ll be at a loss.
Understanding Flood Insurance Coverage
What are your options in getting more coverage? In addition to the standard flood insurance coverage you may be legally required to purchase, you can get more coverage from third-party sellers.
There are insurance providers out there that will protect your personal belongings from the threat of flooding. How much you’ll have to pay to secure this coverage will depend on the level of risk that your home is at.
It will also depend on the features of your home. If you have a basement, you’ll be at a higher risk of flooding and thus will need to take out a pretty hearty policy to get the coverage you need.
You can use a flood insurance calculator to determine what you might have to pay to get proper coverage. Looking at flood maps prior to your speaking to an insurance representative can be helpful as well.
Getting The Best Flood Insurance
If you’re looking to secure the best for your home, you’re not going to want to skip out on flood insurance. But what does flood insurance cover? The above information can help you understand what kind of protection you can expect (or not expect!) when you take out a coverage plan.
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