What Is Flood Insurance? Flood insurance is a specialized insurance policy that is designed to protect homeowners and renters from the financial losses associated with flooding. Unlike standard homeowner’s insurance policies, flood insurance specifically covers damage caused by rising water, whether it’s from heavy rainfall, snowmelt, or overflowing bodies of water like rivers or lakes.

Flood insurance is available through the National Flood Insurance Program (NFIP), which is run by the Federal Emergency Management Agency (FEMA). The program was created in 1968 to provide affordable flood insurance to homeowners and renters in areas that are at high risk of flooding.

Should I Buy Flood Insurance? If you live in an area that is prone to flooding, you should strongly consider purchasing flood insurance. According to FEMA, just one inch of floodwater can cause over $25,000 in damage to a home. Flood damage is not covered by standard homeowner’s insurance policies, so without flood insurance, you could be left with a huge financial burden in the event of a flood.

Even if you don’t live in a high-risk flood zone, it’s still a good idea to consider purchasing flood insurance. Over 20% of flood insurance claims come from areas that are considered to be at low or moderate risk for flooding, and floods can happen anywhere. Plus, if you live in an area that has recently undergone development or construction, the risk of flooding may be higher than you think.

It’s important to note that there is typically a 30-day waiting period before your flood insurance policy goes into effect. This means that if you wait until a flood is imminent before purchasing flood insurance, it will be too late to get coverage for that particular event.

How Much Does Flood Insurance Cost? The cost of flood insurance varies depending on a number of factors, including the flood risk in your area, the amount of coverage you need, and the age and design of your home. On average, flood insurance costs about $700 per year, but it can range from as little as $100 per year to over $2,000 per year.

Keep in mind that flood insurance is a separate policy from your homeowner’s insurance policy, and you’ll need to purchase it separately. However, many insurance companies offer both types of coverage, so it’s worth checking with your current insurer to see if they offer flood insurance.

Final Thoughts Flood insurance can provide valuable protection for homeowners and renters in areas that are at risk of flooding. While it may seem like an unnecessary expense if you live in a low-risk area, the reality is that floods can happen anywhere. By purchasing flood insurance, you can have peace of mind knowing that you’re protected against the financial losses associated with flooding.

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But this is not even the worst part. The most frustrating thing about all of this is that, try as you might, most often, you cannot stop these unfortunate events from happening. At most, all you can do is be prepared to receive any bad news at any moment.

Getting your property insured is a prevention against home accidents

So, what do you do when you return home from a long day of work only to find your basement flooded because a pipeline burst open? 

If you are a proactive, smart, and a law-abiding citizen, the chances are that you will not be affected by this to its full extent. The reason? You will have quality homeowners insurance to pay for the damages the incident will have caused.

What causes a flooded basement?

There are several reasons why your basement could have flooded, and it is these reasons that determine if the typical homeowner’s insurance covers the damages or not. 

In the following paragraphs, we will see when your home insurance has got your back and when you must look for other sources for the money you will need for repairs in case your basement gets flooded. Let’s begin.

When is a flooded basement covered by regular homeowners’ insurance?

1. You are good if your washing machine broke and it was not due to your negligence

All regular homeowner’s insurance policies would grant protection if a broken appliance caused your flooded basement. 

Whether it is your washing machine, the refrigerator in your basement, or even an air conditioner unit – all flooding damage caused by a malfunctioning electronic is paid by homeowner’s insurance.

However, an important point to consider here is that the malfunctioning did not occur due to your negligence. 

If the washing machine you own was the same one, your grandma used to do her laundry, and you never got it serviced and maintained, the chances are that the insurance company will deny your claim. To make sure you do not land in a situation like this, ensure proper upkeep of your electronic appliances in addition to purchasing a good homeowner’s insurance plan.

Pipelines bursting in the winter because the water in them froze will also lead to a payday

It is not uncommon for pipelines to burst during the winter. However, with due maintenance, the chances of this happening can be lowered significantly.

But if you were doing all you are supposed to do to prevent frozen pipelines from bursting and yet it still happened, you do not need to worry. The homeowner’s insurance plan that you have picked for yourself is probably going to take care of any damages that occurred due to the resultant flooding.

As long as you can prove that you were not negligent in maintaining your pipelines, you are looking at a pretty solid case for your insurance money. 

1. You are in the clear even if your bathtub overflowed and caused the flooded basement

This last instance comes as a surprise to most homeowners, but any regular home insurance also covers instances where a water container has overflowed. This includes any indoor or outdoor pools, bathtubs, sinks, and even toilets. As long as you can prove that this situation was not created intentionally but was sudden and accidental, you are probably looking at a fat check from the insurance company to pay for the damages incurred.

When is a flooded basement not covered by regular homeowner’s insurance?

1. If nature put you through it, you might be facing the ordeal alone

If your basement was flooded as a result of a natural disaster, you might not be so lucky to receive reimbursement from the homeowner’s insurance. The only thing that can protect you in these instances is a flood insurance – something that we strongly recommend that you get if you are living in an area that tends to get flooded every other year or so.

However, even without help from the insurance company, there are plenty of organizations that you could call that offer affordable flood control in Chicago.

1. Regurgitating sewerage water also puts you in an unfavorable position with the insurance company

Another instance where you might feel ditched by the insurance company you have bought your home insurance policy from is if your house gets flooded due to backflow in the sewerage lines. This is one of the most exasperating and financially taxing flooded basement situations that you can find yourself in. The reason why your regular homeowner’s insurance might not cover this disaster is that this often involves external sewerage pipes.

1. Water coming from the underground also spells bad news, even to those who have homeowners insurance

Another horrific situation for homeowners is when the foundations of their homes start leaking. This is neither covered by your homeowners’ insurance nor any flood insurance – except in the minor number of cases where the seepage can be attributed to some natural floodwater.

The final word

Are you confused about what your typical homeowner’s insurance will and will not consider? Are you planning to buy one for yourself, or are you still on the fence about it? Do you find homeowners’ insurance as an unnecessary annual expense for something you might never use?

If this is what you think, then we encourage you to reconsider. However, always be sure to ask your insurance agent any questions you might have, no matter how small or insignificant they might seem to you. Before you decide on what insurance policy you need to buy, be sure to carefully read the fine print to avoid any nasty surprises later on.

Author Bio:
About Ashley Rosa: Ashley Rosa is a freelance writer and blogger. As writing is her passion that why she loves to write articles related to the latest trends in technology and sometimes on health-tech as well.  She is crazy about chocolates. You can find her at twitter: @ashrosa2.

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