Floods and flood insurance have the same affect to home buyers, it scares them. It scares them for mainly two reasons. Reason number 1 is: floods can cause you to lose thousands of dollars in property damage. Reason number 2 is: people think they found the perfect home, but don’t realize they need flood insurance to buy it or understand what flood insurance is. Don’t worry I’m here to help! The National Flood Insurance Program uses this definition of a flood:
A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from overflow of inland or tidal waters, from unusual and rapid accumulation or runoff of surface waters from any source, or from mudflow.
Mortgage companies will require you to have flood insurance if your home is in a flood zone. Some people think that their home owners insurance will cover flood damage, and that is incorrect. Home owners insurance will only cover water falling from the sky. When water touches the ground and enters your home, it is considered a flood.
When buying flood insurance it helps to create a home inventory and estimate the cost of repairing or rebuilding your home. Those two together will be your potential loss. You can then present this to an agent and they will help find you the right flood insurance for you. When talking to them make sure any questions you have are answered. These questions can include:
-What will and won’t be covered?
-Will my policy insure me for the actual cost of replacing items, or just what the items are valued at?
-Are there additional expenses or agency fees?
Make sure these questions are answered. Flood insurance is not something to be scared of, but appreciated. It will protect you and your home, because you never know when a flood disaster could occur.