9 Flood Insurance Myths

Written By Charlotte Insurance on September 9, 2020. It has 0 comments.

a flooded building that is in need of flood insurance

Most people never think about flood insurance until the worst happens, and their home is damaged beyond recognition. A lot of people think they don’t need coverage or that it won’t work for them, so they ignore it and never buy a policy.

Let’s bust several common myths about flood insurance so you have the information you need to better protect your home and family.

Myth: Homeowners Insurance Covers Flooding

Not true! Your homeowners insurance will cover some forms of water damage, but not all, and definitely not the common forms of flooding you see on the news. The only way to make sure you’re protected in a flood is with a flood insurance policy.

Myth: You Only Need Flood Insurance if You Live in a Flood Zone

The reality is that anywhere it can rain, it can flood. So yes, if you live in a known flood zone, you need to purchase flood insurance, but even if you live in a relatively low-risk area, you should buy a policy, too. The good news is that premium prices will likely be much lower for those in “low risk” zones.

Myth: You Can’t Buy Flood Insurance in High-Risk Areas

In fact, as long as your community belongs to the National Flood Insurance Program (NFIP), anyone within that community can buy a flood insurance policy. Your premiums may be affected by which zone you live in, but you won’t be barred from insuring your home because you’re in a high-risk area.

Myth: Flood Insurance Can’t Be Bought Before, During, or After a Flood

You can buy flood insurance at any time, even if your home has flooded before. However, flood insurance policies all have a 30-day waiting period after you make the first premium payment. That’s why it’s better to buy a policy sooner rather than later, but don’t let timing stop you from insuring your home.

Myth: Flood Insurance Has to Be Purchased Through NFIP

The truth is that you can purchase flood insurance from your local independent insurance agency, like Charlotte Insurance, or other insurance providers. NFIP doesn’t sell policies; it only backs them.

Myth: Only Homeowners Can Buy Flood Insurance

Let’s bust this myth forever! Both renters and commercial property owners can (and should!) purchase flood insurance. It’s available for you, too, and it’s a good idea to provide financial protection after a flood.

Myth: Disaster Assistance Will Take Care of Damage

If you’re hoping the government will help you rebuild after a flood, you are going to be very disappointed. Federal disaster funds are only available if the President declares a national emergency, and then only small grants or low-interest loans will be available. On average, available disaster aid totals about $5,000 per household which is nowhere near enough to rebuild or replace everything you may lose in a flood.

Myth: Flood Insurance Will Cover All of the Damage

Not quite. Like any insurance policy, flood insurance will have a policy limit in place. It’s important to buy enough insurance coverage so you don’t have to pay part of the replacement or rebuilding costs. But once that limit is reached, you’re responsible for the rest.

Myth: Flood Insurance Doesn’t Cover Basements

This is technically untrue. Flood insurance covers the structure of your home and essential equipment and that includes your basement. What it won’t cover are upgrades you may make to your basement or the non-essential contents.

A disastrous flood can happen at almost any time. Flood insurance helps you rebuild and get back to your life sooner, no matter how bad the flooding may be. Don’t let these myths stop you from protecting your home and your family. Contact Charlotte Insurance today for a free quote on a new flood insurance policy and to learn more about how it can help you after a flood.

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