"Do I need flood insurance?" I get this question a lot, and I often wonder what the person on other end of the phone actually expects me to say. You are asking an insurance agent if you need insurance.....come on. The question I like to toss back is, "Do you want it?"
It is probably important to first understand what exactly is a "flood." Floods are defined as naturally rising water. If the ground around your home becomes saturated and water then creeps in your front door, you are experiencing a flood. Homeowner's insurance will NOT cover the damage caused by flooding. A flood insurance policy will protect you against damage caused by rising water. Just imagine the amount of damage, even 1 inch of water can do to your home:
- Damaged floors
- Damaged base boards
- Ruined drywall from water leaching upward
- Rugs and furniture
Now that we know exactly what constitutes a flood and how even 1 inch of water can ruin your home, you have to now decide whether or not you want to purchase the protection. This ultimately comes down to risk tolerance. How much money would you be willing to pay for the protection? What is the actual risk of flooding? Once you determine the answers to these two questions, you can then make an informed decision. I advise all of my clients to purchase flood insurance on a newly purchased home as they do not yet have a solid understanding of the drainage of the community or your property.
"Do I need flood insurance?" -- YES!