The usual homeowners’ insurance doesn't cover home damages caused by a flood. It may be an additional investment, but it will surely benefit you mainly when your home lies in a flood-prone area.
The following are four reasons why flood insurance needs an overhaul.
Lack of Information
Lack of information mostly leads to misunderstanding. Some people who mistakenly believe that their homeowners’ insurance covers flood damages, which stops them from applying for flood insurance. People who are mindful that they are living in a flood-prone area more likely buy it than those who don’t. Some are too confident that their location’s risk of flooding is low, and some have too much expectation that the government will provide disaster assistance, especially on those uninsured homeowners’ property damages.
Coverage of Flood Insurance
Limits that took effect since 1994 like having the National Flood Insurance Program policy helps a homeowner to purchase coverage up to $250,000 and the home contents to up to $100,000. However, it does not cover “loss of use” of the home, so the cost of home replacement and cash value of its contents are not enough. Because of this, many homeowners tend to buy additional flood protection from private insurance that would secure them to have the actual cost of their properties.
Underestimating Risk of Flooding
Do not be too confident that the risk of flooding in your area seems too low to worry about, causing you not to pay attention to flood insurance as an investment. It is something you should prioritize to be ready for such instances.
Solving the Problem
Homeowners Flood Insurance Availability Act of 2014 is the result of an outcry from homeowners in high flood risk areas. That’s why it is essential to fix programs as millions of people rely on it to help them after devastating floods.
As of now, people need to be knowledgeable about disaster-risks in their area. Also, authorities should inform them and suggest procedures that may help their people in securing their properties. Recommendation and seminars on getting insurance from trusted companies would be a great help. People should not underestimate how disastrous a flood can be and how they could lose their home once it hits them.
At Berlin & Denys Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (800) 946-3303. Get your free quote today by CLICKING HERE.