Do You Need Flood Insurance in a Low-Risk Area?

It’s quite common for property owners to believe they may not need flood insurance because they do not live in an area that is at a high risk for floods. The federal government creates very specific flood maps. These maps determine just how much risk is present in any given area based on a great deal of data. That data includes previous floods, geographic information and overall weather and climate patterns. Yet, many people don’t live in high-risk areas. Why do they need coverage? 

It’s Not Otherwise Covered 
A key factor to remember is that flood insurance is necessary because a typical home insurance policy or one for your business property does not cover flooding. Take a look at the coverage and exclusions listed on your current property insurance policy and you may be shocked to learn floods, and even minor water damage, may not covered. Without flood insurance, you are not protected against various types of water damage. 

Most Floods Aren’t Natural Disasters 
Another big mistake that property owners make is believing that the federal government will protect them. It is true that a natural disaster relief fund may help out in some cases. However, fewer than half of all flooding incidents in the United States qualify for this designation. This means you may not have any protection, no matter if a large or moderate flooding event occurs. 

It Provides Ample Protection 
Every year in the United States millions (and sometimes billions) of dollars in flooding claims occur. That is money used to cover structural damage to homes and businesses from floods. It is funds used to replace property damaged beyond the ability to repair it. And it helps to provide financial protection from long-term risks that could otherwise develop, such as mold and mildew growth. 

Most importantly, without flood insurance, a simple flood creating no more than an inch of water in your home can lead to thousands of dollars’ worth of damage if you do not have a flood insurance policy in place. There is no reason to take this risk, especially if you live in a low or moderate risk area and flood insurance policies are affordable and readily available.