For many, flood insurance is a bit of a mystery. Is flood insurance included as part of a home insurance policy? What is covered under flood insurance, and what qualifies as a flood? At TAS Insurance Agency in Phillipsburg, NJ, we feel the more you understand your loss prevention coverage, the more likely you will be protected when there’s a problem. You don’t need to be an insurance expert, but here are some things you should know about flood insurance.
8 Things to Know About Flood Insurance
1. Flood Insurance Is Not a Part of Most Base Home Insurance Policies
Flood insurance is managed by FEMA and is separate coverage from that of a standard home insurance policy. Flood insurance needs to be applied for and acquired as separate coverage.
2. How Is Flooding Defined?
For flood insurance purposes, flooding is defined as water that comes from external sources like rain, snow, and rivers or lakes that have exceeded their banks and caused damage to property. The TAS can help in your acquisition of flood insurance.
3. Your Need for Flood Insurance Can Change
Climate change, construction, and new developments can change your risk of flooding over the years. Floodplains can change, and groundwater levels can rise. It is important to assess your risks annually and consider if you should add flood insurance.
4. How Big is The Risk From Flooding
Flooding risks are adjusted annually, but recent figures state that about 146 million Americans are in danger of experiencing flooding in their communities. In addition, about 6.5 million are at risk for moderate flooding and 1.5 million are in danger of being impacted by major flooding. The potential for flooding exists in the vast majority of the United States.
5. Flood Insurance Can Help Pay Living Expenses
If your home becomes unlivable due to damage from a flood, flood insurance can help pay for hotel and restaurant costs while flooding recedes and repairs are made.
7. Your Mortgage Broker or Finance Company May Require Flood Insurance
If your home is financed, and you live in a flood zone or area of a higher risk of flooding, the holder of your mortgage may require flood insurance. This is to minimize their risks when flooding occurs.
8. Businesses Should Consider Flood Insurance
Since business insurance generally doesn’t include coverage from flooding, business owners should also assess their risks and consider flood insurance.
Consult With Us
TAS Insurance Agency serves the Phillipsburg, NJ area with a range of insurance products to minimize the financial damage from a variety of financial losses, including flooding. Contact us for an insurance review and price quote. Protect yourself with the TAS Insurance Agency by your side.