Sometimes when you’re buying homeowners insurance, it pays to think outside the box. Or, in this case, outside of the flood zone. Although standard homeowners insurance companies don’t offer flood insurance, your mortgage company will put up a serious fuss if you live within a flood zone and don’t buy it. They’ll actually do more than put up a fuss, but that’s another discussion entirely. Alas, even if you don’t need flood insurance, you might want to consider getting it.
Why on earth would anyone do that? Lots of reasons. Here are a few:
• Just because you don’t live in a flood zone doesn’t mean you’ll never experience a flood. And if that happens and you’re not covered, you’re out of luck.
• There have been billions paid out in flood insurance claims over the course of the last 30 years to homeowners who don’t live in flood-prone regions. This is clear indication that flooding happens a lot, even for homes that aren’t in high risk areas.
• Developments in and around your neighborhood could raise your flooding risk. Are you putting in a pool or do you have a neighbor who’s doing so? This is just one of many scenarios that can increase your home’s flood risk.
When comparing online home insurance quotes, allow for an extra $370 per year to cover for flood insurance through the National Flood Insurance Program. The average cost boils down to about $1 per day but could be more or less, depending on your location. If you’re not sure how to go about obtaining flood insurance, contact your home insurance provider. They’ll be able to point you in the right direction.