Flood Insurance

Flooding can be a devastating natural disaster that has the power to disrupt lives, homes and communities. Whether you live in a high-risk flood zone or in an area that rarely experiences such events, understanding the importance of flood insurance is essential.

What Does Flood Insurance Cover?

Flood insurance typically covers two main components: building property coverage and personal property coverage.

1. Building property coverage may help cover the physical structure of your property, including the foundation, walls, electrical and plumbing systems, appliances and fixtures. It may also cover built-in items such as carpeting, cabinets and bookcases.
2. Personal property coverage may help protect your belongings and contents inside the insured property, such as furniture, electronics, clothing, appliances and valuables. However, certain high-value items, such as artwork, jewelry and collectibles, may have coverage limits. Additional coverage or separate policies may be required for complete protection.

It’s worth mentioning that flood insurance specifically covers damage caused by flooding, defined as a general and temporary condition of partial or complete inundation of normally dry land by water. It does not cover damage caused by other types of water-related events, such as sewer backups or water leaks, unless a flood directly causes them. Each flood insurance policy may have specific coverage limits, deductibles and exclusions, so reviewing the policy carefully and understanding its terms and conditions is essential.

Why Do I Need Flood Insurance?

Flood insurance can protect homeowners and property owners from financial losses and damages caused by flooding. Unlike standard homeowners insurance, which typically excludes coverage for flood-related events, flood insurance focuses explicitly on mitigating the effects of floods.

Floods can occur due to heavy rains, storm surges, melting snow or even infrastructure failures. The damage caused by floods can be extensive, resulting in the destruction of property, loss of belongings and significant financial burden.

By obtaining flood insurance, homeowners can have peace of mind knowing they have taken proactive steps to protect their property and finances from the devastating consequences of floods. It offers a layer of financial security and ensures that homeowners can recover and rebuild their lives after a flood event.

How Much Flood Insurance Do I Need?

Flood insurance needs vary and depend on factors such as the location’s flood risk, the value of the insured property and lender requirements. You should consider having enough flood insurance to cover the cost of rebuilding or repairing your house and replacing your belongings if your home is flooded.

Who Provides Coverage?

Understanding your flood risk, the limitations of standard homeowners insurance and the benefits of flood insurance can help you make an informed decision to protect your home and your financial well-being. The Hammer Agency professionals are ready to help you get the flood insurance that best suits your needs. Contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.