If your property is located near a river, lake, stream or just on a floodplain, you probably have a flood insurance policy in addition to your homeowner protection. However, if you live in an area that is considered as low risk according to the FEMA Flood Map Service Center (MSC), you may think that it is not completely necessary.

Hurricanes are not the only reason floods occur (read more on the top causes of floods here and here), so having flood insurance year-round pays off.

Why Do You Need Flood Insurance?

Some homeowners who don’t live near water believe that coverage may be seen as a waste of money – especially since it’s generally not required. Others think that their homeowner insurance policy will cover water damages in the event of a flood. Unfortunately, many property owners only find out that their policies do not cover flooding when it’s too late.

Trust us, it doesn’t take tons of water to do substantial damage. According to FEMA estimates, even an inch of water inside a home can generate $26,807 in structural and possession losses for an “average” one-story property of 2,500 square feet. Just imagine how much you would spend if heavy rains or other natural disaster cause severe flooding in your area.

Misunderstanding Of The Insurance Policy

Most disasters are covered under a standard homeowners policy. Sadly, flooding is not. As homeowners aren’t aware of this fact, they underestimate the importance of getting a flood insurance policy.

Property owners living in low-risk areas feel they don’t need to pay for the added insurance. But in fact, the NFIP has stated that more than 20% of flood claims come from properties outside of high-risk areas. However, some residents in high-risk areas still don’t purchase flood insurance. People often forget that flooding is not only caused by massive hurricanes, but also excessive snow melt off or heavy rains.

Weighing the Cost

One of the main reasons property owners decide to do without flood insurance is the cost. Although there are many factors to consider when dealing with household expenses, the devastation and damage a flood can cause are well worth adding the flood insurance premium to the budget.

If you live in an area prone to flooding, flood insurance may even be mandatory but even more crucial when disaster strikes. This way, you will have the assistance that you need when dealing with a flood-damaged property and replacing the destroyed belongings. And you will have the financial protection to rebuild your home if necessary.

Take the steps now to protect your house and economic well-being.