Even an overnight flood caused by heavy rains can take a toll on your property, potentially costing thousands of dollars. If you’re asking yourself “Do I need flood insurance?” we hope that this article provides the information you need to make a decision. Don’t hesitate to reach out to us with any questions you may have.
Understanding Flood Insurance
Do you own a home, office building, or other property? If so, a flood could cause tens of thousands of dollars, and potentially more. Flood insurance is the solution to help protect yourself financially. If you have property that’s worth protecting, flood insurance could mitigate the risk, and save you a lot of money if a flood occurs.
What Is Covered By Flood Insurance
While a homeowner’s insurance policy will cover various aspects of home damage, it’s likely that flooding will require separate coverage. At King Street Insurance, we offer policies with the following coverage:
- Structural damage due to flooding
- Damage to your furnace, water heater and air-conditioning
- Cleaning up debris caused by flooding
- Electrical and plumbing systems that need replaced due to flooding
As you might imagine if you’re the owner of a home or office building, these types of damage can cost you thousands and interrupt your business or family life. With the right insurance, you can rest easy knowing that you’ll be covered if a hurricane, storm, or other event causes flooding that damages your property.
Defining A Flood For Insurance Purposes
For water losses to be covered by a flood insurance policy, the following definition applies:
“A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from: overflow of inland or tidal waters; and unusual and rapid accumulation.”
How Can Insurance Help You?
A flood policy can insure your home or property for up to $250,000 in damage and $100,000 for the contents that were destroyed. For this type of coverage, yearly premiums will be approximately $405 annually in low to mid risk areas. Certain areas may have higher or lower risk affecting their premiums, so schedule a consultation with King Street Agency to learn about risks and rates in your specific area.
Do You Need Flood Insurance?
The National Flood Insurance Program states that one foot of flooding damage in a 1,000 square foot home will cost about $27,150. This shows that it doesn’t take a lot of flooding to rack up costly damages to your property. Almost $30,000 in damage for even a minor flood would be a tough amount for many homeowners or entrepreneurs who own office buildings. A relatively small annual premium can help to prevent serious losses in the case of a flood.
Facts To Consider
Our team at King Street Agency understands that there’s a lot to consider when determining if you need flood coverage. On one hand, a flood may never occur in your area in your lifetime… But on the other hand, it could be within the next few years. The fact is that no one truly knows when a flood will hit their property. While weighing the risks, benefits and cost of flood insurance, consider these statistics from FloodSmart.gov:
- Over 20% of flood damage claims come from non-high risk areas
- Flood insurance pays regardless of a Presidential Disaster Declaration
- Damage from flooding is rarely covered by renter’s or homeowner’s insurance
Cost Factors Of Flood Insurance
Different properties will be charged for their flood insurance policy based on various factors. Some of these factors include:
- Is the property in a flood zone?
- Number of floors in the property
- Age of the property
Request A Quote Today
No one wants to be left footing the bill for a natural disaster. If you own property that could suffer tens of thousands of dollars’ worth of damage in a flood, you may have a serious need for a flood policy. For only a few hundred dollars per year, you can enjoy the peace of mind that you will be financially protected in the event of a flood.
King Street Agency has years of experience in providing flood insurance to both home owners and businesses. Plus, we have access to private market flood carriers, which can often have better coverage and premiums than going through FEMA or NFIP.