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Flood Insurance
Understanding Flood Insurance
Most residents in the areas affected by Hurricane Katrina and Rita thought that they had hurricane insurance in their home insurance policy coverage. However, they were in for a surprise when they found out this was not so.
Reason? Typical home insurance policy coverage will not cover for damages caused by hurricanes. It will only provide coverage for damages caused by wind and damage caused by water entering through a wind-damaged area. What is required to protect against flood damage caused by hurricanes is to take flood insurance.
Flood insurance provides compensation in the event of damages caused by hurricanes which are experienced in the form of floods. You need to take flood insurance if you live in a flood prone area and if your home is susceptible to damage caused by tides, waves, and overflowing lakes and rivers. This insurance type was created in 1968, by Congress under the National Flood Insurance Program (NFIP). The government’s purpose of introducing flood insurance as a form of home insurance coverage was to reduce the increasing expenditure in providing relief of flood victims.
Flood insurance not only covers floods caused by hurricanes, tides, waves, and overflowing lakes and rivers, it also provides compensation in case of flood damages caused by flash flooding that happens as a result of heavy rainstorms or rapidly melting snow.
When you make a claim for damages caused by floods, you need to have all the necessary documentation ready. Take photos of the damages so that you can show them to the insurance company. The insurance company will assess the damage caused and will provide compensation accordingly.
On the other hand, thinking that water is not really going to damage your home is foolhardy because just a little water over your home can cause a lot of damage. So be sure to consult with your insurance agent on this if you are living in an area prone to such flood risks.
If you live in an area prone to flooding by hurricanes and you do not have flood insurance, you will be pretty much disappointed because the insurance company will not provide any compensation for your losses. You will have to foot the bill for home rebuilding and repairs all by yourself, which can put a terrible strain on your finances. The mental trauma of having to deal with a problem like a hurricane damaging your entire home is bad enough and hard hit finances will only make it worse.
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