Personal Line Insurance
People who live near water
are not the only ones who experience flooding. Floods
move, and can spread for miles. They can have strong
currents that, in a few moments, can sweep away
everything, leaving a thick residue of mud and debris
behind. Homes, even those on high ground, may be many
miles from a river, lake, or other body of water, and
still have damage because of groundwater flooding or
pounding. It’s not just the high-risk areas that are
flooded. Between 20 and 25 percent of flood insurance
claims come from a medium or low flood-risk areas.
Typically, homeowners’ insurance policies do not cover such things as flooding, landslides, and earthquakes. A special policy or rider is needed to cover damage from these as well as other special hazards.
The individual policy should contain a complete list of elements and equipment covered. It's important to note that some items are included under building coverage and others are covered by content coverage. It is advisable to purchase both building and contents coverage for the broadest protection.
It is important to remember that flood insurance has a 30-day waiting period. That means that if you go out and buy flood insurance after a flood warning is forecasted, your policy will not cover any damages that may be incurred from that flood. If you believe that you are at risk for flooding, getting flood insurance right away is the practical thing to do.
Flood insurance is not required by your lender in most cases. But if you get a federally backed mortgage in an area with high flood risk, the law requires you to have flood insurance. Whether it is required or not, flood insurance can give you the security of knowing that your damages are covered in the case of a flood.