Today’s Pro Talk is about flood insurance misconceptions.
Since 1978, the NFIP( National Flood Insurance Program) has paid nearly $50 billion for flood insurance claims and related costs. Don’t be a victim.
Here are some misconceptions about flood insurance you need to know:
- your homeowners’s policy does not cover flood related issues. They are two different policies.
- Flood insurance is an affordable investment. Imagine a few dollars you spend now to protect your home against all flood related cost which could add up to thousands of dollars, not to mention your irreplaceable belongings, something to think about.
- No need for flood insurance with history of no flooding. This does not hold true anymore. In fact, 25% of all claims paid are loses due to homes locate in the neighborhoods effected by flood in the low-to-moderate risk which probably never flooded before.
- Is the flood insurance required by mortgage companies? While that is true at times, most companies only demand homeowner to carry a flood policy if they live in a special flood hazard area. You can not afford not to be covered.