Understanding Who's Covered By Flood Insurance

Article Posted by Expert Author: adminhoig adminhoig  on 05/06/2013

Some homeowners believe that all homeowners insurance policies cover floods and others believe that none do. The truth is that both can be true – depending on where you live. Flood insurance is required to be a part of a homeowners policy in an area where there is greater than 1 percent of a flood in a single year. On the other hand, those who live in moderate or low risk areas do not have the requirement to have flood coverage. So this means that if you live in a low or moderate risk area that it's not worth it to have flood coverage, right? Unfortunately it's not quite that simple.

Statistics compiled by the FNIP have shown that around one quarter of the claims for flood damage come from homeowners who live in areas that have anywhere from a low to moderate risk. That statistic may be startling, but remember that floods don't happen solely as a result of living near a large body of water that floods. They can also happen as a result of poor sewer lines or simply a lot of rain or melting snow in a short period of time. The truth is that many people should at least consider investing in flood insurance if the are not satisfied with what is outlined in their house policy coverage.


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