Common Misbeliefs of Flood Insurance

When you think about flood insurance, chances are it isn’t a major priority to you, especially if you don’t live in a flood-prone area. However, even areas that don’t see frequent floods can still be at risk in extreme conditions. Don’t wait until it’s too late to research options for flood insurance in your area.​

According to recent studies, all 50 states have experienced floods and 87% of homeowners don’t have a flood insurance policy. Why? Because there are lots of misconceptions about flood insurance, but it is better to research your options before the flood waters are approaching your home...

Misconception #1: You don’t need flood insurance unless you live in a flood-prone area.

To name a few, we have storms, heavy rainfall, and melting snow that can cause flood. You may have not been vulnerable to floods before, but with today’s climate change, there is no longer a safe area. It is not a bad thing to be prepared anyway, and look into flood insurance no matter where your home is located.

Misconception#2: Homeowners insurance covers flood damage.

Many policyholders thought that their homeowner’s insurance policy covers flood. Without being aware that homeowner’s policy may only cover damage from a burst pipe, and not all types of water damage, specifically flood.

Understanding Flood Risks and Insurance Requirements in Your Area

Your insurance rates and requirements are decided based on your flood zone:

1. High-Risk Areas
   Homeowners in these areas are usually required to carry a Standard Risk Insurance Policy by their lenders because there is a 1 in every 4 chance of getting flooded in a high-risk zone.
2. Moderate-to-low Risk Areas
   Homeowners in these areas may not be required by their lenders to carry an insurance policy, but it is still something to consider just to be prepared. They can qualify for a low-cost Preferred Risk Policy anyway.

If you want to learn more about Flood Insurance Policy, Brad Spurgeon Insurance Agency Inc. is the one to call. You can reach us at (409) 945-4746​ or visit our office today. You may get a free quote here.