Why Do You Need To Buy Separate Insurance For Flood Damage?

​Flooding can be commonplace for people living near lakes or other bodies of water. When there is a flood, the risk of damage to your home, furniture, and appliances can also be high. What makes matters worse is that your homeowners' insurance will not pay the cost of flood damage. For this reason, you must buy a separate policy covering flood damage. 

One excuse you might have is that you are not living in a flood-prone area. But with unpredictable weather, anything can happen, so you need to be prepared. According to the Federal Emergency Management Agency (FEMA), just an inch of floodwater can result in $25,000 worth of damage. Having flood coverage can spare you these expenses. But when getting flood insurance, you first need to understand the basics. 

What Is Covered By Flood Insurance? 
Typically, flood insurance can cover your building and its contents, each with a separate deductible. 

Building Coverage 
Building coverage offers protection for the structure of your home. It pays for damages to the following: 

• Water heaters
• Furnaces
• Built-in appliances and cabinets
• Electrical and plumbing 
• Fuel and well water tanks 
• Foundation walls 
• Detached garages

Contents Coverage 
Contents coverage of flood insurance pays for damages to your belongings, including the following: 

• Furniture
• Portable air conditioners
• Clothing 
• Curtains 
• Original artwork 
• Electronics 
• Washers, dryers, and microwaves

It is worth noting that your contents will be covered based on their “actual cash value.” This means that your flood insurance policy will pay you the amount your belongings were worth at the time of the flood. 

What Is Not Covered? 
Certain conditions flood insurance will not cover, such as: 

• Certain water damage 
• Living expenses if you cannot live at home 
• Damage to certain parts of the home 

How Much Flood Insurance Do I Need?
The amount of insurance coverage you need will depend on the size and structure of your house and the value of your belongings. For example, living in a one-story apartment will subject you to higher insurance premiums than living in a two-story bungalow, where most of your possessions are on the second floor, out of reach of most floods.  

Also, remember that most flood insurance will have a 30-day grace period before you can be covered, so buy flood insurance coverage in advance. 

Protect Your Investment with A Flood Insurance 
Buying flood insurance can be a little tricky. Do your due diligence in researching flood insurance. Consult an agent to help you make an informed decision in finding the right insurance for your needs. 

At Family Auto Insurance Agency, we put our clients first by offering them policies that they can afford. Insurance is a necessity nowadays, and we're here to help you. 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. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!