Insurance Tip : Understanding Flood Insurance.

Did you know flood is not covered under your home policy? Here are some flood insurance facts.

1. Flood damage is NOT covered by homeowners policies.

1. You can protect your home, business, and belongings with flood insurance.

2. Everyone lives in a flood zone.

1. You don’t need to live near water to be flooded.
2. Floods are caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems, dam, or levee failure, etc.

3. You can buy flood insurance no matter what your flood risk is.

1. It doesn’t matter whether your flood risk is high, medium, or low.
2. And it’s a good idea to buy even in low or moderate risk areas: almost 25 percent of all flood insurance claims come from low- to moderate-risk areas.

4. There is a low-cost policy for homes in low- to moderate-risk areas.

1. You can buy up to $250,000 of coverage for your home and $100,000 of coverage for your contents.

5. Flood insurance is affordable.

1. The average flood insurance policy costs approximately $400 a year for about $100,000 of coverage.
2. In comparison, a disaster home loan can cost you more than $300 a month for $50,000 over 20 years.

6. Federal disaster assistance is not the answer.

1. Federal disaster assistance is only available if the President declares a disaster.
2. More than 90 percent of all disasters in the United States are not Presidentially declared.
3. Flood insurance pays even if a disaster is not declared