Understanding the Value of Flood Insurance Coverage

Did you know that one of the most frequent and expensive natural disasters that happens in the United States is flooding? Flooding can occur for a number of reasons, such as river overflow, excessive rainfall, storm surge from tropical storms, and of course, hurricanes.

Despite the common nature of flooding, only a small percentage of property owners get flood insurance. The good news is flood insurance is a valuable investment that can be purchased at a variety of price points. With the proper coverage, you can have peace of mind that both your property and its contents are protected.

Flood Insurance Coverage

Understanding the value of flood insurance coverage may make it even easier to seek it out and secure it for your specific needs. There are a few important things to consider when deciding whether you should invest in flood insurance.

Flooding is a Real Risk in Florida

No state has a more vulnerable stretch of shoreline as Florida. The Sunshine State is the ideal location for sun, sand, and unfortunately, floods primarily because of its more than 1,300 miles of coastline.

If you don’t live near the coast, you shouldn’t’ get too comfortable in thinking that your property is not at risk. With a population of around 21 million and the average residence sitting at an elevation of only six feet above sea level, the majority of Floridians should consider their property vulnerable.

Your Homeowner’s Insurance Does Not Protect You Against Flooding

Many types of water damage are covered by typical home insurance plans, but flood damage is not. Flood insurance can be a wise investment, given that just one inch of water can cause as much as $25,000 in damage.

Keep in mind that the goal of flood insurance, like the goal of other insurance plans, is to prevent you from having to pay costly repair and replacement costs in the event of a flood or disaster. Flood insurance has significant return on investment for those who experience flooding, as they have their home and belongings covered.

What Does Flood Insurance Cost and Cover?

Depending on your needs and budget, the cost and coverage of your flood insurance will vary. The National Flood Insurance Program (NFIP), which was created to lessen the socioeconomic impact of floods, offers solutions.

The NFIP imposes a cap of $250,000 for any structural damage to the property brought on by flooding and a cap of $100,000 for actual cash value coverage for any loss of personal possessions. It’s important to note that water damage from other sources (such as leakage or seepage claims), or damage brought on by wind-driven rain, are not covered by flood insurance.

Looking for Coverage?

For some people, the need and choice for purchasing a separate flood insurance policy can seem obvious. However, that may not always be the case for those not in specially designated flood zones. The fact is that without protection in place, you and your family maybe at risk financially. Flood coverage is your best protection.

At GWK Insurance, we assist people in finding the insurance coverage that will best suit their individual needs within their budget. To find out more about how we can get the best coverage for you and your family, contact us today.