Is Flood Insurance Important?

Is flood insurance a necessity? Take a look in the closest mirror and ask the person you see if he or she is the owner of property that could be damaged or destroyed by something as “everyday” as water. If the answer is yes, then you should seriously consider buying flood insurance. Some who need the protection buy coverage offered by the National Flood Insurance Program (NFIP). However, if your community doesn’t participate in the program, you’ll have to look into coverage from private insurance companies.

Is A Flood Loss Likely?

The chances of your business, home or personal property being damaged by a flood depends mainly upon where you live. They also depend on other factors such as:

·        how much of a flood warning you receive

·        the level of flood preventative measures you take (such as moving personal property from lower levels to higher levels)

·        the preventative measures taken by your community (such as the use of flood controls in construction standards or sandbagging threatened areas).

Floods are linked to weather conditions and tend to affect very large-scale areas. This often makes chances of a flood loss greater than a loss from fires or windstorms. Many people have the old fashion belief that flood insurance is only needed if you live in a flood prone area.

I Live In A Flood Zone?!

If you hear the term “flood zone,” you may think that it refers to locations that are particularly vulnerable to flooding. If you live in the USA, you live in a flood zone, no matter where you live. While your area may have a lower chance of flooding than a coastal area or a location situated near a body of water, your area could still experience flooding. A very dry part of the country can be susceptible to flash floods; hilly locations may be harmed by drainage; snowy locations may suffer from heavy snow thaw; other areas may suffer deluges or flooding due to a heavy rain season which has soaked the surrounding soil. So, if you’ve insured yourself against fire, wind and other causes of loss, it certainly makes sense to also protect yourself from the potential of a flood loss.

Why Worry When Disaster Coverage Is Available?

If you believe that after a flood occurs, your loss will be handled by the government declaring it a disaster area, you may come out disappointed and you’re taking a couple of large risks. One, your area may not be considered a disaster area. Two, being designated as a disaster area is not a bargain. Disaster area status only gives citizens access to government disaster loansIF you actually qualify for assistance, you have replaced insurance protection with an obligation to pay off a large, long-term loan. Is it worth it to gamble on a possibility to walk right into more debt? You’ll find flood insurance to be a less expensive and much more valuable alternative.

 

If you have any questions about your existing policy or are inquiring information on a future policy, please call us at (631) 738-7300 or get a quick quote at www.vrpinsurance.com

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August 28th, 2012 by VRP Insurance Agency