What Is Flood Insurance? Should I Buy It?

by | Mar 25, 2023

Flood insurance. Lots of insurance companies mention it on their sites, and you might have heard about it, from a TV ad or a casual remark from a friend, but what is it? And why do need it? I’m glad you asked. In this article, we’ll talk about the basics of flood insurance, what it is, how it works, and what it can do for you.

An Unexpected Crisis

On their website, the Federal Emergency Management Agency states that floods can “happen anywhere” and that just one inch of floodwater can end up costing anywhere from $25,000 to $60,000 and possibly more in repairs depending on your situation. Like it or not, a “small” flood can cause a massive amount of damage. Once water enters your home, it can completely ruin furniture and personal belongings. A few inches of water can make it so your home is uninhabitable. Even if it can be cleaned and repaired, the drywall of your home can become infested with mold, the foundation can be ruined, and a small flood can do just as much damage to your yard, causing plants to rot and water to become stagnant and infected with mosquitos. Additionally, depending on circumstance, your electrical systems may no longer function and your water supply could become contaminated. These are just a few possible outcomes of a flood, and none of them are particularly pleasant, especially if you’re unprepared.

You can see what I’ve been leading you to: Floods be bad. But they don’t have to be, because there’s a way to get you out of this situation. And that brings us to our first point.

Flood Insurance Keeps You Out of Tough Situations

Flood Insurance, depending on your source, is a term that can mean a variety of specific insurance coverages ranging from short-term “padding” coverages to longer-lasting extensive frameworks that can help provide needed relief to individuals in increasingly dire situations.  The National Flood Insurance Program defines a standard policy as “a single-peril (flood) policy that pays for direct physical damage to your insured property up to the replacement cost or Actual Cash Value (ACV) (See “How Flood Damages Are Valued”) of the actual damages or the policy limit of liability, whichever is less.” In this kind of policy, contents coverage must be purchased separately. They are also usually not valued policies (they don’t pay the limit of liability for a total loss), and are not always guaranteed replacement cost policies. That being said, flood insurance can still be just as expansive and beneficial as standard home insurance. Acquiring flood insurance can provide you with lasting and incredible impactful benefits. Surveying agency and flood methodologist agency Risk Factor has this advice on the subject: “Flood insurance is one of the best ways to protect against financial losses caused by flood events as it enables people to recover more quickly and completely. It goes on to state that “everyone should consider buying a flood insurance policy even if it is not required, as most homeowners and renters insurance policies do not cover flood damages.” If you acquire lasting flood insurance, you will be ensured that you will be protected against any flood damages that could come from Louisiana or surrounding states’ often harsh weather climates. A claim can be filed during any period of loss, and we’ll make good on our promise. You won’t need to rely on your personal savings, or run the risk of taking out a massive loan and going into debt, because we’ll handle it for you. 

Check out our flood insurance program at https://marksvilleinsurance.com/homeowners/