Out of all-natural disasters that can potentially occur, flooding continues to be the most common in the United States. Surprisingly, you won’t find flood insurance included in a normal homeowner’s policy; it must instead be purchased separately from the NFIP, or National Flood Insurance Program, through an insurer or agent.
Flood insurance is considered to be property insurance that extends to residential or commercial buildings and covers losses incurred due to flooding-related water damage.
Many times, homeowners skip out on flood insurance if they don’t live in an area considered to be high risk, but data shows that over 20% of claims due to flooding stem from areas considered to be low or medium risk.
In some areas, flood insurance is required due to elevated risk. Lenders can also require homeowners to carry flood insurance for reasons outside of risk, but it differs from home to home.
Flood insurance generally covers the foundation, electrical framework, plumbing, central cooling and heating, large appliances, water heaters, and carpeting. Depending on the policy, flood insurance can also cover belongings such as clothing, electronic devices, furnishings, and portable appliances.
There are generally two types of flood insurance: building and personal. Building property coverage is designed to protect the home itself, as well as its electrical framework, plumbing, and permanent fixtures. Personal property coverage is designed to cover personal belongings such as electronics, clothing, furnishings, and other certain items.
There are plenty of benefits to enjoy from flood insurance. The best advantages of this safeguard are:
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