Do You Need Flood Insurance Coverage?

Did you know that most homeowner's insurance policies do not protect homes against flood damage? Floods can happen to any home in any area of this country, but most people never worry about this or even think that it will happen. If you want to fully protect yourself, your home, and your belongings, you might want to consider adding flood insurance coverage to your homeowner's insurance policy. Here are several things to understand about flood insurance and whether you need it or not.

Different areas have different needs

You probably know that there are areas in this country that are more prone to flooding than other areas, and you can factor this in as you decide whether you need it or not. If you live in an area that is labeled as a "high-risk" for floods, you might already have flood insurance. Many lenders require flood insurance for all homes in high-risk areas. If you live in an area like this and do not have flood insurance, you should definitely purchase it immediately.

If you live in an area that is not likely to experience a major flood, you could easily go without purchasing coverage; however, if you ever experience a flood that causes damage to your home, you will have no coverage for it. Even if the risks are low in the area where you live, you might still want to consider getting coverage for flood damage.

The costs are based on risk levels

As with all types of insurance coverages, the premiums you pay for the coverage you need will be based on the risk level. In other words, if you live in a state that never experiences floods, you will pay less than if you lived in a state where flooding occurs regularly.

On average, people pay around $672 per year for flood coverage, but this amount can be slightly deceiving. People living in Rhode Island and Vermont pay around double this amount on average because these states are considered high-risk states. On the other hand, people living in Texas and Florida pay significantly less than the average because there is a lower risk that a flood will occur.

When it comes to making this decision about flood insurance, you should examine the risk level where you live as well as the cost of the coverage. If you can afford to pay the coverage, it might be worthwhile to add flood insurance to your policy. For more information, contact a home insurance professional.