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Flood Insurance

Some areas are more at risk for floods than others. But floods can happen anytime and anywhere, mainly because so many things can cause a flood. New construction that changes run-off patterns, winter storms and melting snow can cause flooding, no matter if the area is a flood risk or not.

Flood Insurance Explained

Flood insurance provides financial coverage following a flood. It provides variable amounts of building and contents coverage for properties, such as homes, rental units, condos and commercial spaces. A basic policy covers buildings and contents, but personal property coverage is optional.

The Need for Flood Coverage

People who live in high-risk flood areas are often required to purchase flood insurance as a requirement for their mortgage. Basic coverage is the least you can buy, but if you’re in a high-risk area, then the personal property option is something to consider.

You might even want this insurance if you live in a medium risk area. It is estimated that 25 percent of claims are made by owners in non-high risk areas.

The Specifics

Flood insurance is not included in traditional homeowner’s insurance. There’s a widespread and often catastrophic assumption that it is, but it’s not. You must purchase this insurance separately, and funds are typically made available 30 days after the occurrence.

Types

In low- to moderate-risk areas, flood insurance often includes building and contents, however, in high-risk areas, these policies are purchased separately.

A renter can purchase content insurance. But for renters in high-risk areas, factors including the shape of the building will be taken into account. That will affect the cost of the policy.

Benefits

A flood can occur just about anywhere. Water can cause a lot of damage. Flood insurance means you’ll have financial help repairing your property or replacing items.






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