Importance of Flood Insurance Despite COVID-19

​Floods have devastated several states in the past and despite the pandemic, this natural disaster could strike again. Homeowners in flood-prone areas should look into getting insurance to prevent paying high bills later when storms strike.

The Necessity of Flood Insurance
Flood insurance may be deemed unnecessary by most homeowners, but it is extremely important. Understanding its principles and their underlying reasons will help one be convinced of its existence.

1. Required by mortgage lenders for homes that are at high-risk for flooding. This is to ensure that their investment will not be lost to damages.
2. All states have reported experiencing flooding in their areas and a portion of these are not in high-risk zones. Flooding, therefore, is a risk for everyone, not just those who frequently experience it.
3. Gives added security to homes as flooding is normally excluded in basic home insurance policies.

Coverage
Having been convinced of its importance, the decision to invest in flood insurance should be made after understanding its coverages. This is relevant for those who want to make the most informed investment with regards to flood insurance.

1. Protects the physical structure of the house including its foundations, plumbing, and electrical systems, central air, and heating system.
2. Also protects furniture attached to the house and a detached garage, but the policy has specific clauses for these inclusions. Other attachments are no longer covered but can be insured with other policies.
3. Covers clothing, electronics, curtains, some appliances, food, and even valuables but only up to a certain limit.

Exclusions
Just like any other insurance policy, flood insurance also has certain limitations that are set. Knowing these exclusions will help in tailoring the insurance policy in such a way that it meets preferences.

1. Moisture or mold/mildew damage that is preventable is excluded.
2. Does not pay for currency, precious metals, and paper valuables.
3. When the house is deemed uninhabitable because of a flood, living expenses for temporary housing are not covered.
4. Cars and other self-propelled vehicles, as well as outdoor properties, are excluded in the coverage.
5. Limited coverage for below-ground rooms like basements and their contents.

Conclusion
Homeowners should invest in flood insurance since it’s only a matter of time before a big storm brings destruction. One cannot be sure about the climate in the next years due to global warming, so planning is crucial.

At Family Auto Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (313) 285-9042. You can also request a free quote by CLICKING HERE.