One of the most misunderstood types of insurance coverages is flood insurance. Many people are confused over how these types of policies work and who actually needs them, which has led to many fallacies that keep homeowners from adequately protecting their properties. Water damage to homes can often lead to thousands of dollars in damage; therefore, it is vital that you understand the difference between fact and fiction regarding flood insurance. Keep reading to learn about three common myths associated with homeowner's flood insurance.
Myth #1: You Only Require Flood Insurance Coverage If You Reside in a Flood Zone
Properties that are in designated high-risk zones ultimately need flood insurance. However, essentially all buildings face a certain level of flood damage liability. In some capacity, all states within the U.S. are prone to flooding. Floodplain maps are changing constantly in order to include new areas. For that reason, it is important that every homeowner and business owner take the time to consider their options when it comes to flood insurance coverage.
Myth #2: Flood Damage Is a Typical Coverage Under Traditional Homeowner's Insurance Policies
This is one of the more expensive misconceptions regarding flood damage coverage. Standard homeowner's policies exclude damage that is specifically caused by floods, unless the damage is caused by a storm. Because of this, it is necessary that homeowners purchase a separate insurance policy that will provide sufficient property coverage in the event of a flood.
Tip #3: All Damages Are Covered by Flood Insurance
While it may be true that flood insurance will indeed cover a decent amount when it comes to the damage that occurs to personal possessions and property, there are certain limitations when it comes to the insurance coverage. As a general rule, most flood policies don't include preventable damage that is caused by moisture, mold, or mildew. In addition, many policies exclude vehicles as well as property that is typically located outside of the insured structure like patios, decks, fences, septic systems, water wells, and swimming pools.
When it comes to determining your individual flood risk and need for flood insurance coverage, you need to first debunk any myths that you have heard about flood insurance. Once these misconceptions have been identified and thrown out the window, you will be able to understand the true value of a flood insurance policy. Talk to an insurance agent in your area to determine the amount of protection that you need to add to your existing homeowner's policy to ensure that you are adequately protected.
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