Flood insurance is a crucial component of safeguarding your home, especially if you live in a flood-prone area. However, misconceptions about flood insurance may leave homeowners vulnerable to devastating losses. Here are the top myths about flood insurance and why you may need this coverage to protect your home.
1. Myth: Flood insurance is only for people living in high-risk flood zones
Fact: Floods can happen anywhere at any time. Even if you live in a low-risk flood zone, you are still eligible for flood insurance. In fact, about 20% of flood insurance claims come from moderate-to-low risk areas.
2. Myth: Homeowners insurance covers flood damage.
Fact: Most home insurance policies do not cover flood damage. Flood insurance is available separately through private insurers and the National Flood Insurance Program (NFIP).
3. Myth: Flood insurance is too expensive.
Fact: The cost of flood insurance varies depending on your home’s flood risk, but it is generally much cheaper than the cost of repairing flood damage out of pocket.
4. Myth: You can’t buy flood insurance if your home has been flooded before.
Fact: Even if your home has been flooded in the past, you are still eligible to buy flood insurance.
5. Myth: Federal disaster help will cover my damages if I don’t have flood insurance.
Fact: Federal disaster assistance is only available if the president declares a disaster, and when it is available it is usually a loan that you must repay with interest. Having flood insurance means you’re covered, no matter the situation.
6. Myth: I live on a hill, so I don’t need flood insurance.
Fact: While living on a hill may decrease your risk, it doesn’t eliminate it. Heavy rains can cause flash floods or mudslides, which are typically covered by flood insurance.
7. Myth: Only the government sells flood insurance.
Fact: While the U.S. government offers flood insurance through the NFIP, private insurance companies also offer flood insurance, often at competitive rates with expanded coverage.
Understanding your home’s flood risk and the facts of flood insurance can help you make an informed decision, as the potential cost of recovering from a flood without insurance can be financially devastating.
Contact a Westwood agent today to learn more about our flood insurance program and how you may benefit from having flood insurance.
Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.
