If a flood ever hits your city and causes damage to your home, did you realize that your standard homeowner's insurance policy will not cover the damages? This is because homeowner's policies exclude damage caused by floods. Therefore, if you want to have flood damage covered, you will have to add flood insurance to your policy. Here are several things to know about flood insurance.

Is It Required?

Having flood insurance is usually not a requirement; however, there are times when homeowners are required to have it. If, for example, your home is located in an area prone to floods, and if you have a loan on your home, your mortgage lender may require that you have flood insurance. If your home is not in a flood zone, your lender most likely would not require that you have this. Although flood insurance is not typically required, it is something you can purchase if you want to.

How Much Does It Cost?

The average claim for flood damage is around $30,000. If a flood destroyed part of your home and left you with this type of bill, would you have the cash on hand to pay for it? A lot of people do not have this much cash to use for an unexpected expense like this, and this is one of the top reasons to consider purchasing flood insurance, even if your home is not located in a high-risk area.

The average cost for a flood insurance policy is $707; however, you will typically pay less than this if your home is in a low-risk area for flooding. Even so, paying a little more than $50 per month is a great way to safeguard yourself for this unknown risk.

What Does Flood Insurance Cover?

Having flood insurance coverage would come in very handy if a flood ever hits your town, and most policies cover two main things. The first thing is the actual structure of your house. If the flood damages any part of your home, your insurance policy would cover the costs of the repairs. The other thing it may cover is your personal belongings. To make sure you have both types of coverage, talk to an insurance agent and tell him or her that you want both types.

While a flood may never hit your city, having the right coverage could save you from a financial disaster if a flood ever does come. To learn more about flood insurance, contact an insurance agency, like the one represented at https://www.windfallinsurance.com, today.