Every time there is a major hurricane or storm comes the major cleanup and recovery efforts which are bound to involve millions of people. Homeowners in the affected areas then have the task of assessing the damages and beginning the recovery process. But sometimes it become apparent that only a small percentage of homeowners in storm areas are insured for flooding. 

The fear is that many homeowners with large mortgages will might end up deciding to abandon their homes, which happened after the Katrina event of a few years ago. So why do so many people not have adequate insurance coverage for floods? There are some common misconceptions that lead some people to take the risk of going without flood insurance.  

Many people just think it won’t happen to them which is one of the top misconception people have. People think that just because they live on higher ground, or don’t live near a river, they won’t ever be in danger of a flood. The truth is you can never assume where a flood will happen, or when.  

There is also a misconception among people that they don’t need flood insurance because is a big disaster happens the federal government will step in and save the day. In truth, federal disaster grants are typically around $5,000 dollars. If you sustain more than $5,000 in damages you will have to get a low interest loan which you still must pay off.  

Some people have the misconception that their homeowner’s insurance will cover flood damages. A typical homeowner’s insurance policy simply won’t cover flood damages, that’s why it’s specifically called “flood” insurance. 

It is true that there are some locations where the risk of flood is so low that you can go without flood insurance and be reasonably secure about it. The best plan is to do some research and find out what kind of risk for a flood your home located in and then decide based on that information.