Do You Need Flood Insurance? The Answer Might Surprise You

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Homeowner’s policies provide a lot of essential coverage to keep your home and your family safe from losses. But all too often, homeowners make the mistake of thinking their policy provides coverage for all sorts of losses – only to discover too late that their basic homeowner’s policy doesn’t provide as much coverage as they’d thought.

Flood insurance is a great example. According to the National Flood Insurance Program (NFIP), the average flood claim is more than $46,000, and nationwide, claims total about $2 billion per year. Can you imagine paying $46,000 out of your own savings? Probably not. Yet most homeowner’s fail to purchase flood insurance because they incorrectly assume their “regular” homeowner’s policy provides coverage.

In fact, while a homeowner’s policy does offer plenty of protection for many losses, flooding is not one of the losses covered by the typical homeowner’s policy. That means that to fully protect your home and your assets against flood-related damages, you need to purchase additional flood insurance.

When looking for flood insurance, it’s important to know that all policies are not created equal. For instance, some policies provide coverage for damage to your home’s structure but not its contents. Ideally, you want a policy with both types of coverage to ensure your potential losses are completely covered. The cost of coverage can also vary dramatically based on where you live and your home’s specific flood risks. An experienced agent can determine your home’s flood risks using official sources and data to ensure you get the right type and right amount of coverage for your home’s needs. Even if you’re a renter, you should still buy a policy to cover your possessions; don’t make the mistake of thinking those losses will be covered under a landlord’s policy – they won’t be.

And one more thing to remember: Coverage isn’t instantaneous. While a homeowner’s policy usually can go into effect immediately, there’s usually a 30-day waiting period associated with flood insurance, providing the underwriter with time to review your property’s flood risks and other policy details. That means it’s especially important to purchase a flood policy as soon as possible, to help ensure you’re covered if and when flooding losses occur.

With spring showers and summer thunderstorms looming on the horizon, now is the ideal time to find out about your home’s flood risks. At Basi Insurance Services, we help clients from Oakdale, Calif., and the surrounding region understand their coverage needs, providing a comprehensive policy review to determine where coverage falls short and which policy options are available to provide optimal peace of mind. If it’s been awhile since you had your policy reviewed or if you’d like to learn more about flood insurance or other types of insurance, call us today at 877-590-4826 and let us review your policy and your needs.

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