Insurance is one of those critical must-haves in life. We have insurance for our cars, medical expenses, and homes. We even have insurance for our mobile phones which in most cases saves us less than $600 if we need to file a claim. One type of insurance that is often overlooked and far more important than replacing a mobile phone is flood insurance. Specifically speaking, Florida flood insurance could be the difference between having protection from a flood and incurring a major loss. Most home insurance policies do not cover damage to your home due to rising water which is what flood insurance covers.
You may be thinking “My home is not in a flood zone”; "I don't need to worry about it". This is not correct. In Florida, all homes are in flood zones according to FEMA. While you may not live in a high-risk flood zone that does not mean your home is safe from flooding. According to FEMA, nearly 25% of all flood insurance claims occur in low or moderate risk areas. That's why flood insurance is so important to consider. Floodsmart.gov states “Just 1 inch of water can cause $25,000 of damage to your home”.
Do not fall victim to the idea that you have homeowners insurance and you are covered in the event of a flood. Unfortunately, this is most often the case. In fact, most Florida home insurance policies have disclosures specifically stating the homeowners insurance policy does not cover the home in the event of a flood.
In many cases, if you have a mortgage on your home and you are located in a high risk zone your lender will require you to have flood insurance. Even when your lender does not make it mandatory, you should still consider getting flood insurance for all of the reasons mentioned above, since we all live in Florida and we are all in some type of flood zone. The savings from not purchasing flood insurance for your home is just not a risk worth taking regardless of it being required or not. All it takes is one flood to damage your home and cost you tens of thousands of dollars. So, even if it is not required with your lender, you should always consider having flood insurance to protect yourself.
There is good news. Flood insurance is one of the least expensive insurance policies you can purchase. When you compare the thousands or even tens of thousands of damage your home may incur due to a flood, the cost of carrying flood insurance is a price well worth paying. Today, Florida insurance carriers are also offering flood insurance as an endorsement to your home insurance policy. This not only may simplify your home and flood insurance, it may save you even more money.