Nevada has a rather dry climate which is why flood insurance isn’t a standard addition to homeowners insurance policy. Even though Nevada has a dry climate doesn’t mean you will not benefit from having a flood insurance policy. As a homeowner in Nevada, you can get a separate flood insurance coverage to ensure you and your home is protected in the event of a flood. InsureWise would like to share why flood insurance is still recommended for homeowners, even in Nevada.
Why is it Important to have Flood Insurance?
Flood insurance is a policy that covers damage that occurred to the home due to various types of inundations. Inundations include situations such as river overflows, hurricane storm surges or heavy downpours. Flood insurance can be obtained for homeowners, condos, renters, and even mobile homes. Most states, including Nevada will have flood insurance as a separate and as a voluntary choice.
What is Generally Included in a Standard Flood Insurance Policy?
Flood Insurance coverage standards that have been set by the National Flood Insurance Program will include two major types of coverage:
• Building Coverage, which pays for damage done to the home. This can include repair of the plumbing, electrical, structural, foundation, and built-in appliances and cabinetry. The building coverage side normally pays up to $250,000 worth of damages.
• Content Coverage, which pays for damage done by flooding to personal items such as clothing, furniture, appliances and more. However content coverage usually only pays up to $100,000. The Content coverage is also based on the cash value of the item, which basically means you will receive a payment based on the estimate of what the item is worth and not necessarily what you paid for said item.
What Flood Insurance Doesn’t Cover
Flood insurance doesn’t cover damage due to water damage from a broken pipe, overflowing bath tub or other internal systems that malfunction. Flood damage refers to damage done by a storm. However flood insurance will not cover certain aspects of a home such as:
• Deck and Patio
• Swimming Pool and Spa
• Documents or Valuable Paper, and Currency
• Personal Items in Basements
Do I Need Flood Insurance?
Those who live in a high risk flood zone should invest in flood insurance. Some states often require flood zone dwellings to have flood damage insurance. However, in Nevada. even those in a flood zone are not forced to have flood insurance. Even a dry climate like southern Nevada has a history of flash floods. If you live in a flood zone, it is worth having flood insurance. In the event your home was flooded out, you will want to have flood insurance. Even a few inches of water in your home can cost you thousands of dollars to repair and restore your home. In the state of Nevada, annual flood insurance is fairly low and averages around $776 dollars a year. Additionally, there is only a 6% chance of rates rising in the next 10 months which is considerably low compared to other states. Flood insurance is extremely affordable in Nevada, so why not protect yourself especially if your home was built in a high risk flood zone.