Saving your home following a flood should be motivation enough to buy flood insurance. This coverage pays for damages to your home, belongings and property following a flood. It is extra coverage that must be purchased separately from regular homeowner’s insurance. You might have a homeowner’s insurance policy, but that policy does not cover damage from floods.
Flood coverage is recommended for homeowners who live in an area where serious flooding is common. This type of policy is even mandatory in certain US areas classified as high risk for flooding. The coastal areas of Florida are an example. Banks and lenders require homeowners to have flood insurance until mortgages are paid. However, it's good to keep the coverage even after a house is paid for. It’s a smart move because homeowners in these areas are likely to be ineligible for federal assistance otherwise.
Insurance coverage for floods works like a standard insurance policy. The policyholder decides how much coverage is necessary to cover the property and items. The premiums are calculated based on the amount of coverage desired by the policyholder. Any flood that damages the property can be claimed according the terms of the policy. If the insurance company agrees the claim is justified, then they will issue a check to the policyholder.
Anyone who lives in a flood prone area should have flood insurance. Waters from floods are more destructive than most people realize. The cost associated with repairing flood damage can be staggering. Most homeowners can’t pay for all the damages out of pocket. Insurance is really a big help.