When it comes to natural disasters, most people immediately think of wildfires, earthquakes, or hurricanes. However, it might come as a surprise that flooding is, in fact, the most common and costly natural calamity in the United States. It’s also a type of disaster often overlooked when considering insurance coverage for one’s property. In partnership with Dan Burghardt Insurance, this blog aims to clear the air on the critical, yet misunderstood, area of flood insurance.
Flood Insurance: The Silent Guard
First things first, let’s debunk a pervasive myth: Your Homeowner, Condo, Renters, or Business Property insurance does not cover flooding. Flood insurance is a standalone coverage offered by the National Flood Insurance Program (NFIP) and can be obtained through licensed, authorized insurance agents.
Many people erroneously assume that damages from burst pipes or washing machine overflows are under the umbrella of flood insurance. This is not true. Those types of water damage are usually covered by your homeowner’s insurance. Flood insurance specifically covers property damage caused by flooding.
Who Needs Flood Insurance?
The straightforward answer is—everyone. Yes, you read that correctly. Flooding can occur in virtually any location, regardless of the perceived risk level. More than 30% of flood claims arise from properties located in low-risk areas where mortgage companies don’t mandate flood insurance. Even a minuscule amount of water intrusion can wreak havoc; just an inch of water can cause up to $25,000 in damages to your home.
What About Renters?
Renters are not exempt from the perils of flooding. A common misconception is that if the property owner has flood insurance, then the renter’s belongings are also covered. This is categorically untrue. The flood insurance policy of a property owner will only cover the structure and not the belongings of the renter. To safeguard your personal property, renters must procure their own flood insurance.
The Cost Factor
The cost of flood insurance can vary widely, but the average annual premium is approximately $700. Several elements influence this cost, including the value of your property, the extent of the coverage you wish to purchase, and risk factors such as geographical location and flood history.
The Waiting Game: Timing is Everything
If you’re thinking of delaying the purchase of flood insurance, think again. There is a 30-day waiting period before your flood insurance policy becomes active. This waiting period is waived only for loan closings and acts of sales. Waiting for a flood warning to pop up on the news before obtaining coverage? By then, it will be too late.
Conclusion
In collaboration with Dan Burghardt Insurance, we encourage you to reevaluate your insurance needs, particularly with regard to flood insurance. Living without flood insurance is a financial gamble you can’t afford to make. Call a Dan Burghardt Insurance specialist today at 504-456-8585 to discover the options that best suit your needs.
