Flood Insurance Facts
Flood insurance covers damages caused by flooding from a natural disaster or other external forces. The cause of the flood must originate outside of your home. Many homeowners assume that typical homeowners insurance covers floods, but it doesn’t. Flood insurance is a policy separate from homeowners coverage.
This coverage is generally recommended for people who live in flood zones. For example, a home located on the beach or near a lake is more likely to experience a flood. Homes on a flood plain in a low-lying area are at high-risk as well. Any home near a large body of water is at risk for flooding. If you live in such an area, then your property lender may require you to obtain this type of coverage. Otherwise, it’s your choice whether or not to obtain coverage.
Flood insurance typically provides benefits to help recover from a flood. You may need to drain water from your home or pay for damages. The damage must be a direct result of the flood. If you have other water damage, but it’s clearly not caused by the flood, then insurance will not cover it. Speak with a local insurance agent to see if you need this type of insurance.