Is Flood Insurance Worth It? Signs You Need Flood Insurance

It’s been almost exactly 15 years since Hurricane Katrina swept across Louisana and flooded the state with water, ruining thousands of homes and lives.

Despite the years that have passed, the image of the water-logged city is still fresh in the minds of many.

It’s this kind of nightmare scenario that pushes many to consider flood insurance. Flood insurance is in place to protect one’s home and belongings should some kind of catastrophic occurrence come to be.

Is flood insurance worth it? Is it something that every homeowner needs to have? Read on and we’ll walk you through what you need to know.

Do I Need Flood Insurance?

Unless you live very close to the water, flood insurance is likely not something you’ve been thinking about. However, it’s something that you might want to consider seriously.

Why? For one, it’s important that you understand that your home is not protected against water damage. This is true even if you have a solid homeowner’s insurance policy in place. Look at the fine print: damage that results from floods is not covered.

That means all damage to your property and belongings that would occur from a major storm would fall on your own shoulders to manage. This could be debilitating.

You might be thinking: paying for insurance I don’t really need could also be quite bad. How can you determine if flood insurance is worth the risk for your own property?

Understanding Flood Zones

First and foremost, make sure you understand this: everyone lives in a flood zone. Even if you live miles and miles away from the nearest ocean or river, there’s always a chance that your home could experience some kind of flooding.

However, some homes are more at risk than others. You can use maps from Better Flood to understand what flood zone your home resides in and how high of a risk you face. The lower your risk, the more affordable your flood insurance policy is likely to be.

That’s the reason the zones are in place, to begin with: to help decide upon reasonable policy rates. Plenty of homes in low-risk areas still end up flooding and putting in claims. They just pay lower monthly premiums.

These maps and zones can change over time as the landscape of an area changes. It’s important to check in every so often and see if your risk level has altered since last you checked.

Obtaining Flood Insurance Estimates

The best thing you can do if you want to make a decision on flood insurance is to get estimates from insurance companies. Reach out to a few choice companies and see how much it would cost for them to insure your home.

It’s also well worth looking at the aid and insurance that the federal government offers. The government offers flood insurance through FEMA, and it’s very possible to get it at low and affordable rates.