Your homeowners insurance policy will typically come with a number of different coverages, but one that’s not typically found on your standard policy is flood insurance. This occurs for a few reasons, and many homeowners are surprised to learn that their policy doesn’t cover the damages from a flood. While their policy may cover damages from wind, fire, vandalism, or other fairly common catastrophes, it’s important to really study your policy to learn just what it covers, what it doesn’t, and what you may need to purchase additional policies for.
Homes that are built on low ground, near rivers or lakes, or near an ocean may require flood insurance in order to secure a loan. In these instances, your lender will often outline for you the types of homeowners insurance you need so that you can look into these policies before signing on the dotted line. However, what if you don’t live near any of these areas? Should you opt for flood insurance?
3 Things To Know About Flood Insurance
While researching flood insurance, or researching your need for it, it pays to learn a few things about flood insurance and when it may come in handy. 3 things to know about flood insurance are:
- It’s not just for those who live near water – While those buying homes in low-lying areas or near water sources may need to have flood insurance for their loan terms, this type of insurance isn’t just for these properties exclusively. Heavy rainstorms can cause flooding just about anywhere, and opting for flood insurance may be something you want to look into if you find it gives you peace of mind.
- There is usually a waiting period – If you notice your home unexpectedly floods, you might consider quickly purchasing flood insurance. However, there will typically be a waiting period to use your insurance after you’ve purchased your policy. If you live in an area that has a rainy season, you’ll want to purchase your flood insurance policy a couple of months in advance to ensure you’re prepared.
- What does my flood insurance cover? – If your home is the target of a flood your flood insurance policy will cover both structural damage to your home and damage that may occur to your property. For instance, if your basement takes on a couple of feet of water, your flood insurance will cover the property that was kept and lost in the basement space as well as any damage that may have occurred to your foundation.
Giving You The Insurance You Need
Whether you require flood insurance or not, it’s important to get the coverage you need when you’re looking for the right homeowners insurance policy. Speaking to a professional about your needs is the best way to ensure you have the type of policy and the types of coverages that will work for you. If you’re interested in learning more about covering your home or purchasing additional policies, contact us at Panorama today.