Homeowners Flood insurance: why you need flood insurance coverage


Ordinary homeowner insurance covers the structure of your house, other structures on the property, and the contents of your home, but does not cover damage due to floods. You should think about getting flood insurance even though you are not in a flood zone and even if it’s not required by your lender. Almost 25% of all claims paid out by the National Flood Insurance Program are for policies in low-to-moderate-risk areas (Source: The Motley Fool). Don’t wait to buy flood insurance until a hurricane is announced: it is going to be too late. Flood insurance usually takes a month or so to be effective. Same story with regards to earthquakes; if you read your policy carefully, you might discover that you are not protected against earthquake damage, so you might want to pay a little extra for that.

As homeowner insurance covers the contents of your home, a very wise thing to do is to make an inventory of your possessions. Take photos and videos and keep all the bills, and their copies, of your valued items elsewhere than your house (in case of a fire for example).