Many homeowners who are in the flood zone are required to purchase flood insurance and many ponder if your home is flooded, is the insurance going to cover you? Three factors are going to affect the final decision: the value of your home, the level of water damage, and whether you have flood insurance.
In addition to that, because regular homeowners insurance policies don’t cover flood water damage, you will need to purchase flood insurance. Floods don’t mean total loss, in fact, the average flood claim in the U.S is about $30,000.
So here are three myths that many people have about flood insurance
Myth 1: You must live in a flood plain to purchase flood insurance
This myth is actually false. You are most likely required to purchase flood insurance by your mortgage company. However, even if you live outside of a flood zone, you can still purchase it and it is cheaper than someone living in a flood plain. The price of insurance via the federal flood insurance program tends to be based on standardized rates plus the home’s value, and if the location is located in a flood zone. According to Property Casualty Insurers Association of America, the average price for flood insurance is about $600 annually.
Myth 2: Flood Zones Don’t Change
False, flood zones change consistently, your home could be required to purchase flood insurance after a few years you bought the home. It is highly recommended to check the flood plain maps constantly.
There are a few ways you can check to see if you are in a flood zone:
- Floodsmart.gov: Simply type in your address and it will tell you if it is in a flood zone, and provide information on risks, premiums, and available agents.
- Contact an agent: You would want to consult a flood insurance agent before making your final decision and go ahead to purchase your flood insurance.
Myth 3: Flood Insurance Covers Everything
False, federal flood insurance policies top out at $250,000 so let’s say you have a $500,000 house that’s a total loss because of a flood, you will only recoup half of the total value to cover the house structure itself. In terms of personal possessions, a maximum of $100,000 is given under the federal program.
Those figures should be kept in mind before buying a high-value home in an area that has a possibility of being flooded. You also have the option of buying additional flood insurance that would cover claims above the national limits.
Contact a Flood Insurance Expert in Salem, Rockport, MA Today
If you have any questions or looking to purchase flood insurance in the Salem and Rockport area, contact John J Walsh Insurance today. We have the experience and knowledge to fully assist you in your journey to purchase flood insurance. We are proud to serve Salem, Rockport, Beverly, Marblehead, Danvers, Gloucester, and more. Contact us today at 978-745-3300 to learn more.