Reasons to buy flood insurance
Reasons to buy flood insurance. Many new homeowners think their homes are safe because they are not required by their lenders to carry flood insurance. The truth is that, in the US, floods cause about $8 billion in losses a year.
So that you have the clearest ideas, we are going to show you some reasons to protect your property with a flood policy.
If you live in an area that is not listed as a flood hazard zone, purchasing insurance that protects your home could cost you just over a dollar a day. In other words, with about $400 a year, you would cover an estate of about $250,000.
You need to keep in mind that a single inch of water entering your home will be enough to cost you around $25,000. Since you will have to change the electrical system, the air system, the walls, the doors and the frames, some appliances, the carpets, and the floor. Also, live somewhere else while home repairs are taking place. If you were insured, it is your insurer that would take care of those expenses.
You may be thinking that if a flood occurs where you live, a federal emergency would have to be declared. Therefore, the Federal Emergency Management Agency (FEMA) would provide the necessary resources to repair the damage. I’m afraid I’m going to give you some bad news: At best, FEMA would give you a low-interest loan that you’ll have to pay back. In addition, from that moment on, it would require you to maintain flood insurance for as long as you have that home.
Look what happened at the beginning of June. Many streets in South Florida were flooded and no federal emergency was declared. Although it may not seem like it, due to the good weather, we are in hurricane season. In August and September the most virulent stage begins.
Don’t waste time and insure your property with a flood policy. On the other hand, do not forget that homeowners insurance does not cover damage caused by overflowing waters. Reasons to buy flood insurance.