If you are looking into getting homeowners insurance, you may ask yourself: Should I get flood insurance? If you live in Louisiana, you might not know that it’s a requirement to have flood insurance if your home is located in a zone at risk for flooding. That means even if your home has never flooded before, you still need to get this coverage. Floods are unpredictable and can happen without warning; so make sure you’re protected with the right kind of insurance.
Flood Damage is Costly to Fix
According to the National Flood Insurance Program (NFIP), flood damage is not covered under standard renters, condo owners, or homeowners insurance policy. The damage that can be caused from flooding to your home could burn a huge hole in your wallet, especially since a small amount of water could cause damage.
The different types of damages that can occur to your home are structural damage, electrical damage, and defunct sewage systems. In addition to flood damage being covered by flood insurance, it also includes emergency services like sandbagging and evacuation. If you need help paying for flood damage repairs after a flood, this could be more than just a smart financial move.
Flood Insurance Will Save You Money in the Long Run
This extra coverage can be affordable, especially compared to paying for the flood damage repairs mentioned above out of pocket. In fact, premiums are still subsidized by the federal government and can cost less than $400 per year on average!
If you have received flood damage from heavy rainfall or rising waters caused by any means and need help paying for repairs after the fact, having flood insurance through NFIP may cover up to $250,000 in flood damage to your home. Having this will keep your mind at ease at times like these when hurricanes are on the horizon.
It’s the Law
Making matters worse, if you didn’t get flood insurance because your area was labeled a low-risk zone by FEMA or simply thinking that you couldn’t afford it or flood coverage, you could be in for a shock. In Louisiana, flood insurance is required if your home is located in a flood zone and covered by a federally backed mortgage loan — there’s no three-day waiting period here.
NFIP flood maps show areas at high risk of flooding based on historical data, topography (elevation), and flood protection measures like levees or dams. If you live within a designated Special Flood Hazard Area NFIP flood insurance is mandatory — it’s the law.
Though not everyone needs it, flood coverage is a good idea for those at risk of flooding or who have federally backed mortgages in high-risk areas. Nationwide, an estimated 25 percent of all policyholders nationwide do not need NFIP to obtain coverage because they don’t live in Special Flood Hazard Areas — but there is no reason why you shouldn’t get it if you can afford it and need it.
For flood protection and peace of mind, flood insurance is a good idea for everyone who lives in high-risk flood zones and it can protect you from the financial consequences that come from flood loss. After you begin to think about when to buy a home, remember to look into flood insurance, however, only if you need it — do not get it because you think your homeowners policy will cover the damage.