As a homeowner, you might have thought about purchasing flood insurance to protect your property. For various reasons, though, you might have decided against it. Take a look at a few reasons why you should think about buying flood insurance for your property.
1. You Might Be at a Higher Risk Than You Think
You may not think flood insurance isn’t necessary for your property because you might not think flooding is a risk for your area. Your property might be considered to be at a low risk of flooding, for example.
However, flooding can happen even in low-risk areas. If a hurricane or other major storm hits your area, your home could flood. Flooding can also be caused by plumbing issues and other problems, so you should make sure your property is adequately covered.
2. Flood Insurance Can Actually Be Affordable
You could be concerned about how much flood insurance will cost, particularly if you live in a high-risk area. After all, you might already spend a lot on homeowners insurance, and you might not want to take on extra expenses if you don’t have to.
Flood insurance costs do vary based on a few factors, such as the size of your home, the steps you have taken to prevent flood damage (such as by elevating your home above the base flood elevation for your property), and the risk of a flood in your area.
Costs are more affordable than many homeowners realize, though, and shopping around can help you find flood insurance for the best possible price. You can purchase your flood insurance from the same company that your homeowners insurance policy, or you can buy separate flood insurance from another insurer. Look into all of your options to find the best price.
3. You Might Be Required By Law to Have It
You might think that it’s a personal decision about whether or not you want to have flood insurance, but this is not always the case. If you live in an area that is at a high risk of flooding and if your mortgage is federally insured or regulated, then you are required to have flood insurance.
4. Your Mortgage Lender May Require It
Even if you do not live in a high-risk flood area, and even if you don’t have a federally backed mortgage loan, your mortgage lender might require you to have flood insurance on the property. Failing to abide by the requirements of your mortgage could result in forced coverage, which can be much more expensive than flood insurance that you buy yourself, or it could even result in foreclosure.
If you aren’t sure, check your mortgage contractor, or talk to someone from your mortgage company. Then, you can find out if you are required to have flood insurance on the home, and you can get more information about the level of coverage that you are required to have.
5. Flood Damage Can Be Incredibly Expensive
If you aren’t actually required to have flood insurance on your property, you might be thinking about taking the risk. Just be aware that the cost of repairing flood damage can be much higher than you might think.
Having even a few inches of water in your home can lead to thousands upon thousands of dollars in damage. If you do find yourself facing flood damage without coverage, you’ll probably wish you had flood insurance.
Flood insurance is a worthwhile investment for most homeowners. Contact us at Metropolitan Insurance Service Consultants, Inc, for help with buying a flood insurance policy that is right for you and your home.