If you're considering your home insurance options, you may be wondering whether flood insurance is a must or an unlikely necessity. Below is an overview of how you can determine your risk and whether insurance will help.
What Does Your Policy Currently Cover?
Before purchasing additional coverage, it's a good idea to thoroughly understand what your current policy covers. To learn about your current coverage, contact your insurance agent.
It's likely that your insurance only covers flooding that occurs from within the home, such as a bursting pipe or sewer backup. Many standard policies, however, won't cover any flooding and related damage that comes from the outside, such as in the event of a hurricane or flash flood. If this is the case for your policy, even if you aren't in a high-risk area, flood insurance may be an option to consider.
What Will the Additional Coverage Cover?
If your current policy doesn't cover flooding, you may be considering additional coverage. Before purchasing, it's important to go over what this additional coverage will cover and whether it'll be what you need.
Each policy will have different coverage options. One policy may cover damage in the basement due to outside flooding, while another may only cover flood damage in your home caused by a hurricane or flash flood. Before purchasing, you'll need to decide what coverage you'll need based on the risks in your area. If there aren't any options in your area that exactly meet your needs, your insurance agent may be able to help you find the next best option.
Determining Risk
While the numbers don't lie, a low statistical risk to one individual may be a high risk to another. When deciding whether flood insurance is right for you, it's important to determine how comfortable you are with the risk you'll be undertaking.
Some homeowners are comfortable with the risks involved without having flood insurance, while others may be worried about the high out-of-pocket costs if a flood does occur. Your insurance agent will be able to walk you through your flood insurance options and help you to compare the numbers best.
While flood insurance may not be needed by all homeowners, it's a good option that many homeowners may not have even considered. To learn more about the coverage you currently have and about additional options that might be in your best interest to purchase, consult with an insurance agent, such as those at Bailey Insurance Group.
Share10 September 2015
