Why flood insurance is important even if you don’t live in a flood-prone area

Wang Yan

Global Courant

Flooding is one of the most dangerous and devastating natural disasters in the country, according to the US disaster list. Therefore, it is highly recommended for property owners to purchase flood insurance. Many property owners find out too late and risk financial ruin once a flood has damaged the property.

Importance of flood insurance

If you live in a flood-prone area, you already understand the importance of a flood policy and you probably have coverage. However, people living in areas deemed safe from flooding should also consider getting coverage.

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According to the Climate Change Report of the US Climate Communication Science and Outreach, a small change in global temperature can lead to drastic changes in global climate. The report highlights that extreme weather changes could lead to severe droughts, rainfall, storms and flooding in several cities. As a result, heavy rains and floods would be more frequent and intense.

Given the report, even if an area is marked as flood-safe, it’s a smart decision to sign up for flood insurance. Most private insurers also offer conditional water safety. For example, if a water pipe bursts due to fire, your flood insurance will cover the cost of property damage and replacement.

Home and property insurance versus flood insurance

Many people misunderstand that a specific flood policy requires a separate policy to cover flooding beyond standard homeowners and commercial properties. The residential and commercial property insurance offers coverage for structural failure, fire, damage to the building, water leakage and the like. However, flood insurance provides coverage against damage caused by rising water.

Why should you choose private insurance?

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The national insurance schemes offer a number of benefits, ideal if you only opt for the basic insurance. However, if you want a tailor-made insurance package, private insurance may be a better idea. The benefits of private insurance are:

• Coverage of the building (including foundation)

• Coverage of HVAC, plumbing and electrical systems

• Coverage of furniture, clothing and kitchen gadgets such as microwaves and dishwashers

• Property covers including temporarily installed carpets, portable air conditioners, removable microwave ovens, refrigerators and more

• Coverage of related costs including temporary accommodation

Flood insurance is extremely important in light of changing weather conditions and the financial risks associated with not having flood insurance. Talk to your agent or border to determine what coverage you need.

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Why flood insurance is important even if you don’t live in a flood-prone area

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