Exposing Some Popular Misconceptions About Flood Insurance Policies

30 June 2015 by Elijah Steward

Floods are threats that have the potential to cause substantial damages to your home and possessions. While there are insurance policies that can help keep you safe from the financial consequences of these natural disasters, you may not be able to take full advantage of this protection if you are poorly informed about flood insurance. After exposing the following couple of misconceptions about flood insurance, you will be in a stronger position to make smart choices to keep your home safe from flood damage. 

Myths: Inland Homes Have No Need For Flood Insurance

There are many homeowners that may think that it is only necessary to invest in flood insurance if their home is close to a body of water. While it is true that these bodies of water may be more likely to cause a flood, homes that are inland can still benefit from having this type of insurance policy in place. 

Flash floods have the potential to strike anywhere, and these can rapidly fill your home with large amounts of water. This is particularly true for homes that are in basins or other low areas. Considering the sizable costs of recovering from even a minor flood, the monthly premiums for these policies can be a small price to pay. 

Myth: Flood Insurance Always Covers Your Possessions

Many homeowners may be under the impression that a standard flood insurance policy will cover the costs of replacing the possessions that were damaged by the waters. However, this is usually not the case because these policies primarily cover structural damage to the home. 

In order to make sure your possessions are protected, you will need to purchase a separate policy for the contents inside your home. For those that are concerned about the added cost of having this type of insurance, it is often possible to bundle this policy with your standard flood insurance policy. To further reduce the monthly cost of having this type of policy, you can opt for a plan with a high deductible, but this may make it more difficult for you to meet if you ever need to file a claim. 

Protecting your house and possessions from the ravages of flood damage is something that every homeowner should do but many overlook. By understanding that your home does not need to be near a body of water to be at risk of flooding and the importance of purchasing a separate policy to cover your possessions, you will be a more informed homeowner and consumer when it comes time to buy a flood insurance policy. For more information, contact a company like Insurance Service of Sarasota.

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