6 flood insurance myths debunked

Understanding how flood insurance works is really important. First and foremost, unless you live in an area where floods are very casual, do not spend money for a flood insurance policy. It is something that is not necessary and will cost you a pretty penny over a long period of time. Also, flood insurance will not cover all costs that come with flood damage. Sure, insurance companies will pay a little bit but it will not cover things fully.

Key Takeaways:

  • Regular insurance does not provide for flood insurance but the government’s National Flood Insurance program can help although it is $350,000 maximum.
  • On average, the claim for flood insurance is $39,000, negating the fears of many that flood insurance is the same as a total loss.
  • If one lives in a flood plain, the mortgage company will require flood insurance but you don’t need to live there to be eligible.

“Whether your homeowners insurance will cover damage from a flood depends on the value of your home, the amount of water damage and whether you have a flood insurance policy. Here are six persistent myths about flood insurance — and the truths you need to know.”

Read more: https://www.seattletimes.com/business/real-estate/6-flood-insurance-myths-debunked/

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