Flood Insurance - Is it Worth it?
Flood Insurance is an insurance policy that can be added to most homes, no matter where they are located. It’s a common belief that if you live in a flood prone area that you cannot qualify for flood insurance. This cannot be farther from the truth. In fact, it’s required by law if you live in a Flood zone and your home is federally insured. Almost every home can be protected with flood insurance.
Most homeowners don’t realize that flood insurance is a separate policy beyond a typical homeowners insurance policy. Most homeowner policies don’t cover flood damage, so it’s important to get flood insurance regardless of whether or not you live on ocean front property or on a hill somewhere. Statistics show that a home is 30 times more likely to suffer a loss from a flood rather than a fire.
We live in Utah and are surrounded by mountains. Flooding is just part of living here. Runoff in early spring from the snow packed mountains sometimes will cause massive flooding in certain areas. If you are new to the area, it’s important to know where these flood areas are. Once every 100 years, we will have a massive flood, the challenge is that we don’t know what that will be. It’s always a good idea to just be prepared for such a case and have peace of mind.
Flood Insurance costs
The premiums for flood coverage is quite affordable. There are several factors that play a role in determining the premium. The main one is the likely hood of flooding to occur or in other words how close you live to a flood zone. Premiums are much less if your home does not reside in a flood area. If you’re not sure, FEMA which stands for Federal Emergency Management Agency, has produced several maps for you to look at which will show you if you are in a flood area.
For the most part, you can expect to pay anywhere from $300 up to $500 a year for flood insurance. Its also depends on how much coverage you want and your deductible. One important thing to note is how replacement is handled. Some policies will do a replacement cost, meaning give you the amount of money needed to replace the item or structure up to the policy limit or actual cash value meaning only give you what the item or structure is worth today. Either way, some insurance is better than no insurance.
Just a few other things to consider when obtaining flood insurance. Usually there is a 30 day waiting period before your policy goes into effect. This prevents anyone trying to obtain insurance after a flood has occurred and destroyed their home. You must have flood insurance before the flood in order to be covered. Give us a call (801) 679-3653 or fill out our quote form and we’ll give you a quote.