Do You Need Flood Insurance? April 5, 2017 – Posted in: Blog
Sometimes individuals and families find the home of their dreams — only to discover the home sits in a flood plain. Loans for these homes may require flood insurance, but some loans may let you move forward without getting insured — which isn’t to say that forgoing flood insurance is a good idea.
The key question is risk versus cost of coverage. Are you better off paying to repair flood damages rather than paying a hefty premium each month when there’s no guarantee you will experience a flood?
So, the question remains: Do I need flood insurance? Here is some information to help you come to the best possible answer for your unique circumstances.
The Danger of Forgoing Flood Insurance
Let’s say flood insurance is not required for your home loan. That may be good, but remember even a small amount of water in your home can do catastrophic and incredibly expensive damage. The National Flood Insurance Program (NFIP) has conducted research that shows an average flood claim of about $38,000. That’s more than it costs to purchase most cars. The NFIP also estimates that a single foot of water in a 1,000-square-foot home can do nearly $30,000 worth of damage.
Consider these estimates when you are in an area that can flood. If you are in an area that is deemed low risk, it may be smart to set aside money each month for potential flood repairs rather than paying that money in premiums. But, if you live in an area that’s anything beyond low risk, you may find you’re tempting fate. Find out whether or not your area has flooded previously. If so, what kind of damage did homes sustain? Get as much information as possible as you make the best decision for your situation.
Also, some states have special programs that help homeowners save for natural disaster repairs in tax-free accounts. Check in your state to see if programs like this exist to help you find a more attractive alternative to flood insurance.
Sources of Floor Insurance
If you decide you do need flood insurance for your home, even if it isn’t required, you can often find state-run programs, and you can always take advantage of insurance through the NFIP.
That said, make sure to explore private insurers, too. Private insurers often make flood insurance available, and their rates are sometimes even better than what you will find through the NFIP and other public programs.
Getting the Best Deal
Just like with any insurance policy, you can take measures to access better rates. For example, you can choose to install vents for flooding, which can help to reduce the severity of water damage should your home flood. You can also choose a high-deductible plan if you want to save your money for repairs and put some toward insurance premiums.
The best plan is the one that is right for you. Do the research into your area, and make the best possible choice for your home and finances.
Always Here to Help
At Aer Industries, we serve flood damage restoration professionals with high-quality and highly effective tools and equipment — such as air movers, dehumidifiers and more. We know that many times homeowners are searching for flood insurance after they have experienced a catastrophe. We are always here to help, offering the best in equipment at competitive prices.
Make sure you have the flood insurance you need for your home and the right tools to restore the effects of flood damage.
See our selection of water damage restoration equipment today.