Why Homeowners Need Flood Insurance Policies

If you own a home, then you need to secure this specialty insurance.

While standard homeowners insurance in Carrollton, Texas, is designed to protect against a broad spectrum of risks, certain threats are excluded from coverage.  Most notably, home insurance policies will not cover damages related to floods.  To protect yourself against this risk, you will need to secure a separate flood insurance policy.  Here’s what you need to know about these specialty insurance policies.

What does home insurance cover?

As previously mentioned, home insurance does provide coverage for many common damage events.  For instance, the following perils are all covered under standard homeowners insurance policies:

  • Fire and lightning
  • Windstorms and hail
  • Smoke damage
  • Explosions
  • Vandalism or malicious mischief
  • Damage caused by aircraft or vehicles
  • Volcanic eruptions
  • Theft
  • Broken water pipes causing water damage

However, there are certain damage events that are too costly to be covered by standard home insurance.  This is why flooding is almost always excluded damage events.

What is Flood Insurance?

Most flood insurance policies are administered by the Federal Emergency Management Agency (FEMA).  Insurance providers work with FEMA to offer homeowners access to this coverage in flood-prone areas.  Flood insurance offers coverage for the physical damages and losses caused by floods and flood-related erosion.  This coverage extends to floods caused by heavy rain, dam breaks, clogged storm drains, unusual tide surges, and so on.

How Much Does Flood Insurance Cost?

The cost of your flood coverage is dependent on several factors.  When determining your coverage rates, insurers will look at the following:

  • The amount of coverage you have purchased
  • The deductibles you set
  • The location of your home
  • The age, occupancy, and structure of your home
  • The elevation of your home’s lowest floor relative to the elevation of the 1% annual chance flood

This is what you need to know about flood and earthquake insurance.  Do you have additional questions about your homeowners insurance in Carrollton, Texas?  If so, then contact the experts at Mike Leonard Insurance Agency.  Our dedicated team is eager to find you the right coverage from one of our many carriers, including: Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance.