What Should I Consider When Shopping for Flood Insurance?


If you don't live in a flood-prone area, you may be thinking you don't need flood insurance. However, flood risks are still present, even in areas that are not traditionally considered flood-prone. It's important to know that floods can occur anywhere, and do not require a storm system or other weather events to cause them. 

Because most homeowners' insurance policies do not cover flood damage, you need a policy with adequate coverage that can protect you from paying for damage caused by flooding. So, how do you know what policy is right for you? Keep reading to learn what you need to consider when shopping for flood insurance. 

Things to Consider While Shopping for Flood Insurance

Coverage Needs

Residents of high-risk flood areas must purchase flood insurance. Residences in low-risk areas should also consider purchasing such a policy as an extra measure of protection against flooding.

To determine if you live in a high-risk flood zone, you can search your address on the FEMA Flood Map Service Center. Along with purchasing insurance, there are other ways, like upgrading your home, that can help minimize flood risk and flooding damage.

policy exclusions

Every insurance policy is different, and with different providers come different exclusions. Ask the insurance provider to describe the policy and exclusions in detail. This way, you won't be caught off guard if you incur damage or loss. 

Cost, Deductibles & Discounts

Flood insurance doesn't need to be expensive. The cost of your insurance depends on the level of coverage you choose and the amount of deductible you want to carry. The amount of deductible you carry will play a large part in determining how much your premium will cost. If a disaster strikes, the higher deductible means more money out of pocket on your end.

Additionally, some types of homeowners and renters policies offer discounts, which can result in substantial savings on premiums. Ask the insurance provider about any that may apply to you or your property.

Time Frame

Flood insurance policies must be purchased within a certain time frame. In most cases, it takes 30 days for a policy to go into effect once an application is submitted; however, in some instances, the policy may go into effect immediately after the application has been made.

Lender Requirements

In high-risk flood zones, lenders require homeowners to purchase flood insurance as a condition of receiving a mortgage. This protects the lender's investment if a catastrophe such as flooding were to occur.

Ultimately, getting the best possible coverage at the best price requires research and comparison shopping. In the end, when you are shopping for your own flood insurance, remember that rates will vary based on your area and whether there is a flood insurance requirement (which typically depends on the severity of flooding in your area). Shop around and find an insurance company that not only suits you, but has a track record of positive customer service.

At Highline Risk Solutions, we can help you navigate the intricacies between homeowners' insurance and flooding risk. To learn more about flood insurance, contact us today or claim your free flood insurance quote


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