What Is A Flood Insurance And The Effects Of 2020 On The Insurance Industry

The year 2020 left its mark, from the spread of the pandemic up to the greatest storms ever experienced. The world had its downs and stayed there for a while. However, the insurance industry is taking a different light from these issues, especially with the more frequent flooding occurrences.
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Read on to know more about flood insurance and the effects of 2020 in the insurance industry.

What is Flood Insurance?
Flood insurance is the attainment of protection and coverage from an insurance agency. This insurance gives back the estimated worth of your assets damaged by a flooding incident. 

Flooding incidents themselves can be caused by having high tides on the rivers’ water levels. It can also be a sudden downpour of rainfall that is more than the drainage system’s capacity. Since most home insurance does not cover this, flood insurance became a league of its own. Having this set-up, you might need one if you are currently living in a high-risk area.

Types of Flood Insurance Coverage
Flood insurance comes in two types:

1. Building coverage
   You can claim the monetary value of what you’ve just lost in the home structure due to the flood. The building coverage includes plumbing and electrical lines, heaters, walls, built-in appliances and cabinets, and furnaces. 
2. Contents coverage
   Contents coverage is a type of flood insurance covering the damages for anything that is lost and unrepairable inside your home. These personal possessions may include furniture, displays, washers, and clothing. 

Who needs flood insurance?
Flood insurance is very important to the ones who need it. If you are in a low-lying residential area, and you know that flooding occurs in your neighborhood, then consider getting a policy. In some high-risk areas, it is required to get flood insurance. 

What Is the Effect of 2020 on the Flood Insurance Industry?
Ever since the great typhoons came in the year 2020, there had been a significant increase in policyholders for flood insurance. This phenomenon also caused numerous companies to offer this type of insurance coverage as well. The rise in numbers did not only occur in high-risk areas but low-risk places as well.

Conclusion
The storms that passed by within a year, most of which have record-breaking strength and movement, were unforeseen by many homeowners. With this breaking, every news outlet, information, and awareness about flood insurance has risen.

At Family Auto Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (313) 285-9042. Get your free quote today by CLICKING HERE.