Why You Shouldn’t Drop Your Flood Insurance
One place people often cut costs is with their insurance. Pinching pennies now may seem like a good idea, but it can become detrimental when you are caught in an incident without coverage. Having flood insurance may seem redundant, but reconsider drop your flood insurance when you are looking to save money.
Why Do I Need it Anyway?
You may not be required to have flood insurance depending on your home’s location. In certain areas, flood insurance is mandatory dude to high flood risk. But even if you don’t live in a high risk area, flooding is always a potential threat. You never know when you will be faced with a flash flood or experience the effects of spring thaw.
Doesn’t My Homeowners Insurance Cover Flood Damage?
Typically, homeowners insurance does not cover the damage caused by flooding. This means if you are hit by an unexpected storm, and your basement becomes a swimming pool, you’re out of luck. You’ll need a separate flood insurance policy to help cover your home and your belongings in the event of a flood. Double check with your insurance agent to see what exactly your homeowners policy covers, and what it does not.
What Does Flood Insurance Cover?
Flood insurance can differ from policy to policy. However, you will often have the choice to just cover your home’s structure, your belongings, or both. This can include:
- The building and foundation
- Electrical and plumbing systems
- Central air-conditioning equipment, furnaces, water heaters
- Paneling, wallboard, bookcase and cabinets
- Window blinds
- A detached garage
- Debris Removal
- Personal belongings such as clothing, furniture and electronic equipment
- Air conditioners
- Carpets not included in building coverage (not permanently installed, or permanently installed over a finished floor
- Clothes washers and dryers
- Food freezers and the food in them
- Certain valuable items
How Can I Save on Flood Insurance?
Rather than dropping your flood insurance entirely, work with your agent to find ways to reduce the cost. While it’s best to think about flooding when building your home, that’s not always feasible. However, some things to help you save could include:
- Relocate equipment to an area that is above the base flood elevation.
- Ensure that your home has the proper amount of flood opening.
- Elevate your home. You can save on every foot that your home is elevated above the base flood level.
- Relocate your home to an area on your property that has its natural grade above the base flood elevation.
Other Ways To Save on Insurace
Alternatively, you should ask about discounts on your other insurance policies. For instance, you could qualify for a good driver discount or a multi-policy discount. Ask about these other discounts and if you are eligible to save there! Talking to your agent about ways to save is a good way to ensure that you aren’t compromising on coverage. They can help you find solutions that won’t break the bank.