3 Common Misconceptions About Flood Insurance
Are you covered if a severe flood hits your front room? What about a nearby creek that creeps onto your property and into your basement?
According to FloodSmart.gov, floods are the “most common natural disaster in the United States.” In high-risk areas, there is a 1-in-4 chance of flooding during a 30-year mortgage.
Even so, “losses due to flooding are not covered under typical homeowner’s and business insurance policies,” according FloodSmart.gov.
Experts say don’t wait for a flood warning to find out whether or not you’re insured for flooding.
Here are three common mistakes you can avoid when it comes to flood insurance.
Mistake No. 1: Floods Won’t Affect You
Flood insurance is legally required in connection with most financing of homes in designated FEMA flood zones. However, all residents, including renters, can also choose to get insured. Policies are generally purchased from the National Flood Insurance Program (NFIP) and sometimes from a private insurer.