Insurance is great to have when the unexpected occurs. Unfortunately, it’s rare to find a policy that covers every possible thing that could happen. Some incidents such as natural disasters, typically require separate policies that cover the specific damages that can occur. A good example is flood insurance, which isn’t included in most homeowners’ policies, but it still a popular option.

When looking at all of your options, you may find yourself asking whether or not you need flood insurance. It is one of those policies where if you need it, then it’s practically a must-have, but if you’re unlikely to actually use it, then it may be an unnecessary expense. Here is a bit about the coverage it provides and the circumstances which it is all but essential.

What is flood insurance?

As the name implies, flood insurance is a policy that provides coverage in the event of a flood. That is a bit of an oversimplification of the coverage, and it can lead some people to not get flood coverage when they actually live in an area that needs it. Flood insurance provides coverage in the event of a flood, but more specifically, the coverage is to help you recover in the event of flood damage.

Though that may seem like the same thing, the difference can be significant. While flooding obviously produces flood damage, there are other ways flooding can occur that need to be covered. Prolonged periods of heavy rainfall can produce floods but it can also occur with severe storms, tornadoes or hurricanes. Flood insurance may also cover some damage caused by events related to flooding, even if the flood waters don’t cause it, such as flooding that results in sewer backup or similar incidents.

Do you need flood coverage?

In areas that are prone to flooding, you’ll likely be required to buy flood insurance as a condition of your mortgage before you can take out a loan to buy a home. This is especially true is you buy your home with an FHA loan or other government-backed mortgage and live in what’s known as a “flood hazard area.” These are parts if the country where there is a significant risk of high flood waters on a regular or semi-regular basis. Even if your mortgage doesn’t specifically require flood insurance, if you live in such an area, you should look into a policy because it’s more likely that you’ll eventually experience some amount of flooding.

Even if you don’t live in a flood hazard area, some parts of the country are more prone to flooding than others. If you’re likely to experience large spring or summer storms, live near a coast where hurricanes or tropical storms might hit, or just buy a home in an area that’s known to get heavy rains that are slow to drain due to soil deposits like clay, you may have a not-insignificant flood risk. Provided that coverage is affordable, having flood insurance may make recovery a lot easier if you end up finding yourself on the wrong end of a major weather occurrence that results in significant flooding around your home.

Finding your policy

If you live in an area where flood insurance is required or even highly recommended, you might find yourself wondering where to get flood coverage. We can help you with that. We have connections that we have made over the years that our clients have used and loved including insurance professionals that can hook you up with a great deal on your flood insurance. Let us know how we can help you and be your real estate resource for life.