Due to heavy rains and pounding thunderstorms, Texas is never a stranger to floods. Floods are unpredictable, and when they do strike, they result in property damage and even loss of lives. Given the imminent danger of floods, you need to protect your home with flood insurance to avoid financial turmoil. And if you are not familiar with flood insurance, hang on as Texas Independent Insurance of Allen, TX shares insight on this little-known insurance coverage.
What is flood insurance?
Flood insurance covers your home or business when water damages your property and other assets. While flood insurance is available through the National Flood Insurance Program (NFIP), you can purchase flood insurance through a private insurance company. To note, however, is that typical flood insurance takes effect after 30 days. So, if you are purchasing flood insurance, keep the grace period in mind.
What does flood insurance cover?
Flood insurance covers your building and contents inside. The building property coverage covers the below:
- The building’s foundation, floor, walls, and the roof
- The electrical and plumbing system
- Air condition
- Permanent fixtures like cabinets, carpets, and paneling
The contents property coverage covers furniture, clothing, electronics, curtains, washing machines, and other personal assets.
It would be best if you had flood insurance even when not near a water body
The truth is that the risk of flood damage is high if your home is located near water. However, floods can still affect houses located far away from the water. According to FEMA, approximately 20% of flood insurance claims are made by people with homes in moderate-to-low-risk areas.
Disaster assistance isn’t always available.
Most people don’t consider buying flood insurance because they depend on federal assistance. This trend could cost you financially because not every flooded area is regarded as a federal disaster area. And even when the grant is given, it’s in the form of a loan that you are expected to pay back.
Buy flood insurance today!
No one knows when floods will strike. And because home insurance doesn’t cover your Allen, TX home against flood damage, purchase a stand-alone flood insurance coverage from Texas Independent Insurance for peace of mind.