Flood insurance is often covered in myths and misconceptions, leading many homeowners and renters to make poor decisions about their coverage needs. As extreme weather events become more common, understanding the realities of flood insurance is more important than ever. InsureWise would like to debunk some of the most common myths surrounding flood insurance.
Flood Insurance Myths & Facts
Myth 1: My Homeowners Insurance Covers Flooding
This is perhaps the most common of all the myths. Standard homeowners and renters insurance policies typically do not cover flood damage. Flood insurance is usually a separate policy, often provided through the National Flood Insurance Program (NFIP) or private insurers.
Myth 2: I Don’t Live in a Flood Zone, So I Don’t Need Flood Insurance
Everyone lives in a flood zone, it is just a matter of risk level. Low-risk areas can and do experience flooding. In fact, more than 20% of flood claims come from properties outside high-risk flood areas. Remember, floods can occur due to various reasons like heavy rains, melting snow, or even new development changing the local runoff path.
Myth 3: Flood Insurance is Only for Homeowners
Flood insurance is available to homeowners, renters, condo owners/renters, and commercial owners/renters. Renters can insure their belongings, while condo owners can cover their possessions and parts of the building they own.
Myth 4: Flood Insurance is Too Expensive
The cost of flood insurance varies depending on several factors, including your property’s flood risk, location, age, and type of coverage you choose. For those in moderate-to-low risk areas, preferred risk policies offer lower premiums.
Myth 5: Flood Insurance is Not Necessary if I have Never Flooded Before
Past experience is not a reliable indicator of future risk. Flood patterns can change, and just a few inches of water can cause thousands of dollars in damage. It is important to assess your risk and protect your home before it’s too late.
Myth 6: I Can’t Buy Flood Insurance Immediately Before or During a Flood
You can purchase flood insurance at any time. However, there is usually a 30-day waiting period from date of purchase until your policy goes into effect. So waiting until a storm is on the horizon means you are likely too late for the coverage to apply for that event.
Myth 7: Federal Disaster Assistance Will Cover My Flood Damage
Federal disaster assistance typically comes in the form of low-interest loans to help you recover from flood damage, not grants. This means you will have to pay the money back. Additionally, such assistance is only available if the president formally declares a disaster, which does not happen with all floods.
Myth 8: Flood Insurance Covers Everything
Flood insurance has limitations and exclusions. For instance, NFIP policies typically do not cover additional living expenses like temporary housing, if your home is uninhabitable. Also, there is usually a cap on how much they will pay out for damages.
Flood Insurance Policies & More in Las Vegas, Henderson, Reno, North Las Vegas, Summerlin, Paradise, Spring Valley, Sunrise Manor, Enterprise, Sparks, Carson City & State of Nevada
Flood insurance can be complex, but understanding what it covers and dispelling these myths is key to making an informed decision about protecting your property. If you are unsure about your flood risk or what coverage is right for you, consult with an insurance professional who can provide guidance based on your specific needs and location. For flood insurance and more, contact InsureWise today.