Flood is harm for people’s life and people’s properties, even give more stress and bad influence on national economy. It is well known that flash floods occur in the highest mountains of the United States and are common in the arid plains of the southwestern United States. The massive rainfall from floods and other tropical storms and the sudden thawing effects of ice dams can also lead to flooding. Meanwhile, the most risk is faced by Southern Florida, New Orleans and the Manhattan section of New York City according to the report from the journal Environmental Research Letters. So the people reside around these areas will insurance cover the damage if a flood swamps your home. General family insurance does not include floods. You need to go through the government’s National Flood Insurance Program – but please note that the maximum coverage for your home and its content is $350,000. According to the flood insurance plan, people tend to link floods to total losses, but the average flood claim for US homeowners is about $39,000.
Here are some myths about flood insurance to be persisted by others, but I hope you may know the truths about it.
Flood insurance is only for the areas as high risk
After completing a three-year renovation project for a 1,800-square-foot cottage home, the floods placed it under water for nearly four months. Scheiber, who was the head of insurance at South Dakota, said he had to take the house apart and regroup it. At the same time he urged all homeowners – even those who do not live in designated floodplains – to weigh the dangers and their choices and seriously consider buying flood insurance.
You must live in a flood plain about a policy
This is wrong. If you live in a floodplain, your mortgage company may ask you to purchase flood insurance. But even if you don’t live in the flood zone, you can buy it. Chris Hackett, director of personal lines for the Property Casualty Insurers Association of America, says “Almost anybody can get flood insurance who wants flood insurance.”
Another person, Don Griffin, vice president of personal lines for the Property Casualty Insurers Association of America, also already stated against to the rumor as a policy that you must live in a flood plain. He says “The price through the federal flood insurance program is based on standardized rates and depends on the home’s value and whether or not it’s in a flood plain.” Based on insiders explanation, you may find agent and ask them to help you to buy a policy as well.
My homeowners policy covers floods
Typical home insurance policies do not include earthquakes or floods. Therefore, homeowners who want to cover any of these disasters will need to provide separate, specific coverage for these types of disasters. Hackett says “Unfortunately, a lot of folks may be under the impression that their standard homeowners policy might cover flood damage.” It means the standard policy does not cover floods.
Flood insurance covers anything
Unnecessary thing. When it comes to the physical structure of a home, the federal flood insurance policy can be as high as $250,000. If you have a $300,000 house that is totally loss due to flooding, you can get up to $250,000 through the program to pay for the structure itself.
Flood maps no change
The floodplain (and the floodplain map) has evolved and changed. Just because when you bought home a few years ago, not on the flood plains doesn’t mean you are not in one now. Griffin says “Agents have different levels of sophistication with regard to this product,” and he adds “You get a different answer sometimes. So you make a couple of checks to make sure you’re protecting yourself.”
Distinguish for Water damage
Please do not think that all water damage is the same. This is totally wrong thought when it comes to your insurance. Hackett says “If there’s a storm and your roof comes off and water comes through, that would be covered under your homeowners policy,” added by Hackett, “Versus a flood situation where the riverbank overflows and you look out of the front of your house and you need a boat to get from point A to point B.”