Natural disasters are some of the most unpredictable yet destructive occurrences to consider if you own real property. Having flood insurance is an essential part of doing business and a vital part of living in some areas. How do you know if you need flood insurance? Let’s take a look at some of the reasons that you might want to prioritize it.
Considering the Value of Your Home
If your home is worth less than $250,000 and it is ever flooded, you are probably looking at more damage than the actual value of your home. Even an inch of water can put your damages in the upper five digits, and anything more than that can quickly and exponentially increase this number. Flash floods typically bring anywhere between 10 and 20 feet of water.
Note: There are private flood insurance policies available if you would like to insure your home & belongings to their full replacement cost. You are not required to stick with the $250,000 offered through the NFIP program.
High-Risk Flood Zones Change
FEMA keeps the government’s official Flood Insurance Rate Maps (FIRMs) that help mortgage and insurance companies determine the risk associated with a geographical area. These maps change more often than you might think. Dam improvements and changing weather patterns can cause the area your property is on from low risk to high risk under your nose. If you do not have the right insurance ready, you may be caught in the undertow without even knowing that you were at high risk.
Personal Property Insurance
Your real property is not your only concern during a flood event. Your personal property must also be protected. The National Flood Insurance Program (NFIP) offers a benchmark for personal property coverage: $100,000 including depreciation value. If your community is not one of the 21,000 that uses NFIP (and it probably isn’t!), you need to get this coverage from a private insurer.
Relocation and Other Expenses
If your home or business office is the victim of a flood, you have more than replacement costs to worry about. You certainly can’t live or work in that area until it has been brought back up to code, and you will need other accommodations while the work is being done. This is an added expense that can sometimes be just as expensive as the replacement costs. The right kind of flood insurance will give you coverage for these quite substantial expenses, which become even more important if you are responsible for elderly people, babies, children or pets.
If you have a question about flood insurance or you are looking for the best way to go about obtaining it, call the dedicated experts at Brashears Insurance. Visit our website for more information as well. We are ready to provide you with insurance that will ensure your peace of mind and effective protection as well.