What You Need To Know About Flood Insurance

If you live in an area that is susceptible to flooding like Louisiana, it’s important to consider flood insurance. Many people don’t know that flood insurance isn’t included in their standard home insurance - one of many misconceptions when it comes to flood plans. Here are some common flood insurance myths, debunked by bankrate.com:

You must live on a floodplain to get flood insurance:

This is not true. If you live on a floodplain, your mortgage company will likely require you to purchase flood insurance. If you don’t live on a floodplain, you can still get flood insurance! And it’s generally less expensive to purchase if you do not live on a floodplain.

You only need flood insurance in a high-risk area:

Wrong! 1 in 4 flood claims come from homes not in a floodplain or high-risk area. That means even if you don’t think it could happen to you - it can! You’ll want to be prepared for anything, so consider adding flood insurance to your portfolio even if you believe the probability of flooding is unlikely.

Flood insurance covers everything:

Not necessarily. When it comes to the physical structure of your house, federal flood insurance policies top out at $250,000 - meaning you’ll be at a loss if, say, you have a $350,000 house. But that’s just for the structure itself. For your personal possessions, flood insurance caps at $100,000 under the federal program. If your home and/or personal belongings are worth well above these figures, you can purchase “excess flood insurance” through a private carrier that will cover costs above the national limits.

Flood insurance is included in my homeowner’s policy:

This is the biggest misconception about flood insurance, which may come from water damage being covered in your standard policy (flood damage is not water damage, they are actually two different things!). Standard homeowner’s policies do not include coverage for flood damage, so if you want to add a flood plan to your policy, you’ll need to purchase it separately.

For most people, your home is your most valuable possession. It’s worth protecting, so you will need to take out a separate policy to protect it from flood damage. If you have more questions about flood insurance, or are interested in adding it to your portfolio, contact Melissa  Penzato at 985-875-7707 for more information.