As the people of southeastern North Carolina have discovered recently, no home is completely safe from flooding, regardless of the established flood zones. When it comes to the safety of your home, you are five times more likely to experience flood damage than fire damage. If those odds aren’t enough to sway you, here are four more reasons to purchase flood insurance.
- Cost of Repairs. The National Flood Insurance Program (NFIP) estimates that just six inches of flood water in a 2000 square foot home is likely to cause $40,000 in damage. Most standard homeowners and renters insurance policies don’t cover flood damage, making that $40,000 financially devastating. Without flood insurance, most residents have to pay out of pocket or take out loans.
- Lender Compliance. Most mortgage lenders will require you to have flood insurance if your home is in a high-risk flood zone. Federally regulated lenders also require flood insurance. Even if you are in a low or moderate risk zone, your lender can still choose to make that a requirement.
- Disaster Relief. People tend to ignore flood insurance because they believe that a Presidential Disaster Declaration will assist them with repairs and pick up where their homeowner’s insurance leaves off. This couldn’t be further from the truth. Disaster assistance comes in two forms: a U.S. Small Business Administration loan, which must be paid back with interest, or a FEMA disaster grant, which is only about $5,000 on average per household.
- National Rates. Flood insurance rates are set nationally. Your particular rate should be similar from agency to agency, however several factors affect your price like the age of your home, how it was built, the property elevation and its overall flood risk. The maximum coverage you select will also change your rates, and if your building is worth over $250,000 you may have to buy excess flood insurance.
Bottom line: Flooding can be an emotionally and financially devastating event. Even a few inches of flooding can be catastrophic to you and your wallet. Most policies have a thirty day wait period, so don’t hesitate. Contact us today to get Flood Insurance Coverage.