Do You Need Flood Insurance?

flood insurance floridaEvery homeowner unquestionably needs house insurance, just as every driver needs car insurance. But flood insurance does not come with such hard and fast rules in most areas of the country. Only extremely flood-ridden places like coastal cities require homeowners to pay for floor insurance. Most of the American population lives in low or moderate risk zones where flood insurance is not a requirement and thus is largely ignored. After all, it’s an extra cost for something that is viewed as a very low risk.

But the truth of the matter is that wacky and unpredictable weather has been escalating in recent years and causing weather patterns in new and unusual areas. Fires, hurricanes, earthquakes, and tornadoes have all impacted larger geographical scopes, leaving previously low risk areas in greater danger of flooding. So the question remains: in this age of climate change and escalating weather risk, do you need flood insurance for your home?

What Qualifies as a Flood?

Your existing home owners insurance will cover water that falls from the sky, but not water that has reached the ground. This might sound like a silly differentiation, but it’s very important and something to speak with a Tampa water damage attorney about. If strong rain contributes to a tree falling through your roof and water damages your walls and carpet, regular homeowner’s insurance will cover it. But if that same thunderstorm causes a nearby river to flood into your basement, you won’t be able to seek reimbursement for damages without specific flood insurance.  

Does the Extra Cost Pay Off?

America consists of different flood zones based on risk. You can talk to your insurance company to determine your zone and use that as a guiding light to determine if flood insurance is worth the investment.

The average flood insurance policy can cost between $600 and $800 a year, an extra expense that most homeowners feel is completely worth the price for the peace of mind it provides considering that the average flood damage claim is at least $30,000. A $2,000 sq. ft. home might require $16,000 just in floor repairs! While government aid is available, it’s only in the form of a loan that is restricted to use in places declared a federal disaster area.

One extraordinary statistic shows that 20 percent of flood claims come from low to moderate risk locations, which means one in every five flood claims originates from a geographical area deemed not likely to flood. More stunning is the fact that the statistic does not take into consideration all the floods that cause damage to homeowners without flood insurance who can’t seek compensation.

Though there are many considerations to weigh, flood insurance may be a great idea. Tampa lawyers can give advice on these situations as well.