Believe it or not, flood insurance may prove to be a valuable investment, even if your home is not located in a floodplain.
Flood insurance covers physical damage to your residence or personal items due to floods. Thus, flood insurance offers added protection for your home and belongings, making it exceedingly valuable for homeowners.
As a homebuyer, you may search for residences that are located outside of floodplains. But it is crucial to note that even a few inches of water can cause substantial property damage in a short period of time, and a residence remains at risk for flood damage even if it falls outside of a floodplain.
So should you purchase flood insurance for your new home? Ultimately, there are many factors to consider, including:
1. Your Homeowners Insurance Policy
Homeowners insurance does not cover flood damage. As such, you likely will need to purchase a flood insurance policy if you want to safeguard your residence against flood damage.
Those who reside in designated flood zones will need flood insurance. Meanwhile, flood insurance usually represents a valuable option for those who live in inland areas or away from major rivers as well.
If flooding occurs, you'll want to do everything possible to protect your home and assets. And with flood insurance, you'll be better equipped to safeguard your residence and belongings in the event of a flood.
2. Your Umbrella Policy
With an umbrella policy, you are able to add liability coverage beyond what is offered in a standard homeowners insurance policy. An umbrella policy also offers protection against major claims and lawsuits to further safeguard your home and assets.
Although you might have purchased an umbrella policy for extra liability insurance, this coverage does not apply to flood damage. As a result, you will need to prepare accordingly if you want to insure your home against floods.
3. The Coverage Provided by Flood Insurance
Although flood insurance offers value for homeowners, it may fail to deliver full protection for your home and belongings.
Federal flood insurance policies commonly provide coverage up to a set amount for your home and possessions. In the event that your residence or belongings are worth more than these totals, you'll only receive compensation from your insurer up to the federally mandated amount.
When purchasing flood insurance, it is important to consider the value of your home and belongings. If you feel that flood insurance coverage fails to meet your needs, you may want to consider excess flood insurance to increase your total coverage.
Furthermore, discussing your flood insurance options with a real estate agent may be a great idea. This professional will be able to tell you if your new home is in a floodplain and offer tips to ensure that you find a residence that satisfies all of your needs.
Floods can cause serious damage quickly, but homeowners who are ready for the dangers posed by these natural disasters can plan appropriately. Therefore, homeowners may want to consider purchasing flood insurance, as this coverage will protect their homes and belongings if flood damage occurs.About the Author
Kimberly Hering
Kimberly Hering's devotion to helping people achieve their real estate goals stems from her genuine enjoyment of the process. Whatever the task, Kimberly makes it her mission to get it done, however she can, without compromising her client's needs. Often, that means thinking outside the box. After working with Kimberly, clients describe her as being Trustworthy, Creative, Patient, Highly Skilled, Attentive to the Process and having a lot of Integrity.
After spending more than 15 successful years working on Wall Street, Kimberly transitioned into Real Estate, joining Alain Pinel Realtors, then moving to Zephyr, now Corcoran Global Living, in 2018. During her career on Wall Street, Kimberly was a Vice President working as an Institutional Equity Salesperson for Montgomery Securities for 10 years. She covered the top money managers throughout the US and Canada. She joined Jefferies & Co as a Senior Vice President managing the Western Region Institutional Sales group, while continuing to cover the top money managers.
Kimberly leverages her extensive experience selling equities to top money managers throughout the US and Canada, to successfully negotiating any Real Estate transaction seamlessly for her clients. Kimberly is well versed in Marin's neighborhoods, towns, cities, and education system.
Living in the Bay Area for 35 years, 25 years in Marin and having 2 sons in local Marin schools, Kimberly spends a lot of time volunteering in the community and serving on various local Boards. Kimberly has a collection of resources ranging from the best local breakfast spots to vetted contractors. With her reliable list of valuable resources, Real Estate experience and unsurpassed knowledge of Marin's many communities, Kimberly can guide her clients through every aspect of a Real Estate transaction seamlessly.
Relocating to Marin, downsizing, upsizing, first time home buying, final home purchase or sale, or a lot to build a dream home, no matter the undertaking, Kimberly works seamlessly until the job at hand is completed with 100% satisfaction.