The submergence of a dry land by the overflow of water is called a flood. Flooding can either be caused by means of a natural source or by internal factors such as pipe bursts, overflow, or malfunction of an internal water supply system.
As per the California Department of Insurance, the number one natural disaster of the nation is flooding. Although floods occur in almost every area in the country, many property owners and lessees don’t prepare for the unfortunate happening as they don’t consider a flood will take place. It must be noted that a standard homeowner’s insurance doesn’t not cover expenses related to flood damage. If you’re thinking that flood insurance should only be bought by homeowners who live in a flood risk zone, then you’re wrong. As recorded by National Flood Insurance Program (NFIP) from 2014 to 2018, over forty percent of all NFIP flood insurance claims were filed by flood insurance policy holders outside the high-risk flood zones & even required one-third of federal disaster assistance for flooding. So, if you think your immunity from floods comes from the location you live in then you know better now. Rais Insurance is one of the Best Flood Insurance Companies in California
Did you also know that just an inch of water can cause $25,000 in damages to your home? It’s true. If a flood has damaged your home and you don’t have a flood insurance policy for whatever reason, the expenses incurred by the damages will have to be paid for, out of your pocket which could leave you financially broke and distressed. An average homeowner’s insurance policy does not pay for damages caused by floods induced by external factors which mean earthquakes, storms, poor drainage systems, etc. However, if your house gets flooded due to a pipe burst, or water overflow your homeowner’s insurance policy covers damages caused by it, which goes on to show you that you need both home and flood insurance policies.
Now, if you live in a high risk it is essential that you purchase a flood insurance policy. If you are living in a rented property in a high-risk flood zone, then again you will have to maintain coverage till you’re occupying the property. But, if you’re staying in a low to moderate flood risk zone, unless mandated by your lender, you don’t have to maintain a flood insurance policy, although it is wise to do so. You not only safeguard the house, but also the assets & lives in it and also save yourself from financial losses.
According to FEMA, you can purchase coverage’s to help protect your home or/and personal belongings and the two basic types of coverage are;
Building property coverage
This protects the physical structure of your home and its foundation; plumbing and electrical systems; central air and heating systems; attached bookcases, cabinets and panelling; and a detached garage (other detached structures need their own policy). Maximum coverage limit: $250,000
Personal contents coverage
This protects clothing, furniture and electronics; curtains; some portable appliances; freezers and the foods within them; and certain valuables, like art (up to a specified limit). Maximum coverage limit: $100,000
Please note:
• Flood insurance will
pay claims regardless of whether or not there is a Presidential Disaster
Declaration
• There are two forms of
Federal disaster assistance; a loan, that must be paid back with interest, or a
FEMA disaster grant, which is about $5,000 on average per household.
• There is a 30 day wait period before the flood insurance policy comes into effect, so one must purchase the policy before the season of flooding begins or once one notices conditions that could be conducive to flooding. Although private insurance companies provide lesser wait periods
The conclusion is that Yes, home and flood insurance both are necessary and one must purchase both insurance policies to safeguard their assets and to protect themselves from financial losses, mental stress and other losses due to the flood.
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