Do I Really Need Flood Insurance?

The simple answer is…yes. Owners and renters should both have flood insurance.  In high-risk flood areas there is at least a 25% chance that your home will flood during the course of a 30-year mortgage. And flooding can happen anywhere, not just high risk areas.  Poor drainage systems, rapid accumulation of rainfall, snowmelt, and broken water mains can all result in devastating water damage to your home.  


I’m a homeowner, doesn’t my homeowners insurance cover flooding?


Not necessarily. If a pipe breaks in your home, or a window breaks during a storm and rain comes in, then the damage and your possessions would be covered. However, if standing water from a storm, or water from a nearby flooded creek or mudflow came into your house you would not be covered at all. Homeowners insurance and flood insurance work in tandem to make sure that your home and belongings are fully covered.


Won’t Federal Disaster Assistance cover my losses?


Federal disaster assistance normally comes in the form of a low interest loan to help cover the cost of flood damage. This assistance, however, is only available should the president formally declare a disaster, and the loan must be repaid along with your mortgage. While this kind of loan is a nice option to have when you are trying to get back on your feet after a flood, it should not be used as a form of flood insurance.


I’m a renter, why do I need flood insurance?


Renter’s insurance is great to have should the unthinkable happen when you are renting.  However, flooding is not covered at all under general renter’s insurance. You would be at a total loss should the apartment or home you are renting flood.


Even if you don’t live in a flood zone, you are still at risk for a flood. Flooding can happen for a number of reasons, even something as small as a new building development can cause rainwater to flood a neighborhood that previously had no problems.  There is usually a 30-day waiting period once you buy flood insurance, so now is the time to think about and buy flood insurance.


If you would like to know more about what coverage you have currently, what level of risk your current area carries, or would like to add flood insurance to your existing coverage please give us a call at 530-674-3430.  



Posted on January 7, 2014 .