The Importance of Flood Insurance

2015 Flood Outlook

Flood insurance can save you a lot of money, and a lot of time in the event of a flood in your home. Water damage, or floods, can be very time consuming and very costly to any property owner, but this can be made easier by maintaining a flood insurance plan.

This year’s flood outlook highlights the areas that will be the most prone to flooding. This includes most of the Midwest states, as well as the east coast and even some of the south. Anybody who owns a home in these states should definitely look into having a flood insurance plan if they don’t already. In most cases, your policy won’t go into effect for about a month, so securing a plan now would be in your best interest.

So, what exactly will flood insurance do for you? Well, first, it will save you a lot of money if your home ends up flooding. In the United States, flooding is actually the number one most common natural disaster. It is important to be aware that a standard homeowner’s insurance policy will not cover flood damage. In order to be covered for flood related damages, you must actually purchase a flood insurance policy through a private insurance carrier or through the National Flood Insurance Program (NFIP) that was created through the Federal Emergency Management Agency (FEMA).

Once you have decided which flood insurance carrier you want to purchase a plan through, there are some ways that you can lower the cost of your premium. If you do some minor home improvements, such as raising the elevation of your home, or even installing flood vents, can lower the risk of flooding on your property. Therefore, this lowers your monthly insurance payment. If you do decide to go this route, make sure that the cost doesn’t interfere with the money that you’ve set aside to meet your deductible. Another thing that you could do is to make your deductible higher or choose less coverage. If you agree to pay a little more if you file a claim, it will help you manage your premiums. Just always be sure that you can afford to come through with the cash if needed.

Also, if you live in an area that isn’t a high risk zone according to the NFIP, then you could consider not buying a plan with a lot of coverage, only enough for what would accommodate you. But no matter how well you plan ahead for a possible disaster, the costs could be more than you anticipate. If you don’t have a sound financial footing with money set aside for emergencies, it might be in your best interest to purchase a plan and get coverage. Flood policies in moderate to low-risk areas could cost less than what you pay on a monthly basis for cell phone coverage, and it will save you thousands of dollars if your home does in fact become damaged from a flood.