Three reasons to buy flood insurance right away
Many mortgage lenders do not require new homeowners to carry flood insurance. This fact gives a false sense of security. The truth is that, in the US, floods cause about $ 8 billion in losses a year.
In order for you to have a clear idea, we are going to show you three 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 to protect your home would be worth just over a dollar a day. In other words, with about $ 400 a year, you would cover equity of about $ 250,000. It is a matter of doing numbers.
The second reason is quite illustrative. A single inch of water entering your home will be enough to cost you about $ 25,000. Since you will have to change the electrical system, the air system, the walls, the doors and frames, some appliances, the carpets, and the floor. If you were insured, it is your insurance company that would take care of those damages.
The third reason is a bit more thoughtful, in case you plan to take a shortcut. You may be thinking that if a flood occurs where you live, a federal emergency should 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 the bad news: in the best-case scenario, FEMA would extend a low-interest loan that you will have to pay back. Also, from that moment on, it would oblige you to maintain flood insurance for as long as you have that home.
Catch up on today’s news and see how many storms and hurricanes are haunting Florida. Don’t waste time and ensure your property with a flood policy. Don’t forget that homeowner’s insurance does not cover flooding damage.