How to Purchase Flood Insurance

flood Floods are deadly, and within a few minutes can damage property beyond your wildest imagination. A scientific study has proven that a person living in a flood-prone area will see a flood at least once in their lifetime and hence, buying insurance against floods becomes a necessity. It is incorrect to assume that your home insurance policy will cover floods, they usually cover theft and burglary. You need to find where to buy a flood insurance separately.

Statistics show that an average sized-home of a middle-class homeowner may incur somewhere around $30, 000 worth of damages during the floods. Recovering from such losses can sometimes be next-to-impossible, and post application approval, insurance is issued after a 30 day waiting period. Hence, it is advisable not to delay buying flood insurance from any of the best flood insurance companies in California.

Here we are sharing with you the steps to purchase a flood insurance.

1.What is your risk factor –  You can look at the FEMA (Federal Emergency Management Agency) flood insurance map to judge the level of threat you and your home face in case of a flood.  The FEMA map is also known as the FIRM (Flood Insurance Rate Map) lets you know if the premium you pay will be higher or lower.

2.The kind of valuables you have - Though flood insurance may cover damages to a home, you need to check out if the valuables such as an antique dining table are covered or not. Depending on the severity of a flood threat, you can either take a separate insurance or auction the item.

3.Know the premium - The higher the threat, the more the premium you are likely to pay. It is therefore necessary to go for an insurance cover you can afford. The United States National Flood Insurance Program sets the price or rate of the flood insurance in California and in other US states. It may cost close to USD 100 for a year. The location of the home, its size, building configuration and other attributes and aspects are considered for setting the price.

Do remember, flood insurance is mandatory. The Federal law of USA requires all homes in the high flood risk areas to have flood insurance. Though the FEMA flood probability maps are the best way to know whether you need the flood insurance or not, you need to take an informed decision.

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