Is flood insurance worth it? With the heavy rain flooding roads, submerging cars, and damaging houses, millions of civilians are suffering across Texas and Oklahoma. What’s even more painful is the fact that many home owners affected by the floods, don’t have flood insurance.
So why are these civilians opting out of flood insurance? A homeowner out of Amarillo says “Homeowner policies don’t include flood insurance. It’s an add-on that most people deny because they don’t want to pay the extra premium.” Although flood insurance is not required, the cost of cleaning up after a flood can be financially exhausting.
Flood insurance is available to homeowners, renters, condo owners/renters, and commercial owners/renters. Most flood insurance policies are inexpensive but it all depends on the flood zone you live in. You can check out FEMA’s flood map here and see if your area is eligible.
So what kind of flood insurance is the best choice for you?
There are two types of flood insurance to insure your property: building and contents. The building coverage insures your building and the contents coverage insures your possessions. As a homeowner, you can insure your home for up to $250,000 and its contents for up to $100,000. Renters can cover their belongings in the home/apartment for up to $100,000. Under the National Flood Insurance Program (NFIP) you must choose from a menu of coverages with prices that are pre-determined. You also have the option to customize your policy and cover your contents and the building separately, which is cheaper.
Here is an overview of flood insurance coverage:
Building coverage includes:
- The building and it’s foundation
- Electrical and plumbing system
- Central air conditioning, furnaces, and water heaters
- Refrigerators, cooking stoves, and built-in appliances such as dishwashers
- Permanently installed carpeting
Contents coverage include:
- Furniture, clothing, and electronic equipment
- Curtains and window air conditioners
- Portable dishwashers and microwaves
- Carpet that isn’t included in the building coverage
- Washer and Dryers
- All other buildings and personal property that are valued at the actual cash value.
Securing flood insurance is a smart decision for protecting against personal financial loss due to flooding. The federal government does not spare financial assistance unless the President has declared a disaster, and even then, you are looking at loans with interest rates. Protect yourself before it’s too late and purchase flood insurance today. Remember, it takes 30 days for your coverage to go into affect.