With all the recent weather activity in Southern California it may be a good time to find out some more about flood insurance. Most people already know but unless you have flood insurance you just aren’t covered. A regular homeowner’s insurance policy doesn’t cover flood damage. In addition, policies through the National Flood Insurance Program top out at $350,000 for your home and goods. So, you may need supplemental coverage if your home and possessions total more than that.
While floods are a terrible thing, they aren’t usually responsible for a total loss as most people tend to think. In fact, the average flood claim for U.S. homeowners is about $30,000, according to the National Flood Insurance Program.
Here are some other interesting things that are often misinterpreted about flood insurance.
Some people believe that you must live in a flood plain in order to get flood insurance. The truth is you can get flood insurance regardless of where you live. Of course, it’s cheaper if you don’t live in a flood plain because the chances of filing a claim are less. It’s also good to know that if you rent your home or live in a condo, you can buy flood insurance for just your possessions
Just because you have flood insurance doesn’t mean that you are completely covered if you lose everything in a flood. The physical structure of your house may only be covered up to $250,000 which means that if your house is worth $300,000 and is destroyed in a flood you can only recover $250,000 of the value. Keep in mind that your personal possessions are additionally covered up to $100,000.
It may be a good time to think about flood insurance but if you are thinking about it, here’s one more thing to consider. There is a 30-day waiting period between when you buy the coverage and when it kicks in so make sure you think ahead.