Jun 20
Do You Need Flood Insurance?
Flood insurance may not be your top priority, especially if you’ve exhausted your insurance budget on home insurance, health insurance, and car insurance but in the wake of Katrina and with the upcoming hurricane season, it’s never been more clear how essential extra insurance protection can be.
But do you really need flood insurance? It depends where you live. About 11 percent of homeowners in the United States live in areas in which they are mandated to purchase flood insurance in order to qualify for a mortgage backed by the federal government. But almost 35 percent of floods happen outside of this high flood area.
FEMA sets flood insurance rates, so don’t worry about being hoodwinked here. Your rates are determined by where you live, ranging from $385 to more than $2000 per year. What kind of coverage do you get for those kinds of fees? Nor more than a quarter of a million to cover the cost of damages to your home and $100,000 for loss or damage to possessions inside your home. You can claim damages for equipment that is normally used in the home, but anything kept in the basement won’t be covered.
Just because you don’t live in a high flood area doesn’t mean you won’t suffer damages because of it. Flash floods happen everywhere and there doesn’t need to be a natural disaster or a hurricane to make it happen. The choice is up to you.
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