5 Common Flood Insurance Myths

Written by Mike

My home isn’t at risk for a flood. This is what many people believe, right before they find the water rising and their personal belongings soaked. Despite the fact that many people are in jeopardy of a flood, there are plenty of homeowners who overlook the importance of flood insurance.

Here are five myths that you need to be aware of:

1. Home Insurance Does Not Cover Floods

For whatever reason, many people continue to believe that this is true. If you want to protect your home against flooding, you need to purchase a separate policy. Don’t believe it? Contact your home insurance agent to discuss your policy and requirements.

2. Basement Coverage is The Same as The Rest of The House

This can be difficult to understand, so make sure you read and understand your entire policy. Some elements of your basement will be covered including: furnace, hot water tank, and foundation walls. However, don’t expect flooring to be covered by flood insurance.

In short, your basement is not looked at in the same way as the rest of your home when it comes to flood insurance.

3. Additional Living Expense Coverage is Provided

With home insurance, you expect to receive additional living expense coverage should you not be able to live in your home due to a disaster such as a fire. This is not the case with flood insurance. Your policy will not cover additional living expenses. Instead, you will be required to pay for a place to live while your home is being repaired.

4. The Ability to Purchase Replacement Coverage

This is yet another difference between home insurance and flood insurance. With your traditional home insurance policy, you have the right to purchase replacement cost coverage for your belongings. The same cannot be said for flood insurance. Instead, cash value coverage is your only option.

5. All Outside Property is Covered

This is one of the biggest myths. Your flood insurance will not cover any belongings or property outside of your home. This includes but is not limited to: swimming pools, hot tubs, decks, fences, and landscaping.

Final Tips

When shopping for flood insurance, you must know exactly what you are getting. If you buy a policy with the thought that it is the same as home insurance, you are going to be extremely disappointed.

Here are a few tips for buying a policy:

  • Speak with an agent who is familiar with flood insurance and able to explain your coverage in great detail
  • Know exactly what is and is not covered
  • Keep a copy of your policy in a safe place – you will need this if you ever need to make a claim (and quite possibly dispute what is covered)

Don’t let these five common flood insurance myths effect you. Instead, shop for a policy based on what you know to be the truth. This will give you peace of mind, even when the rain starts coming down in buckets!