Know the risksFloods occur across the country every year and cause more than $2 billion in property damage. You don’t have to live close to water to be in danger. About 25% of all flood claims happen in low or moderate risk areas. Floods can be caused by tropical storms, simple rain storms, and hurricanes. In many areas, inadequate drainage can result in flooding, too. Leveling forests and overdevelopment have affected the land’s ability to absorb water or channel it away from where people live. Add changing weather patterns to the mix, and it is easy to see how the risks have changed.
Who needs flood insurance?Flood insurance covers damage from floods, flowing mud, and dirt or debris left by moving water. Homeowner’s insurance does not. If you have a mortgage in a Special Flood Hazard Area, you are required by law to have flood insurance. Many people think the federal government will protect them in case of a flood. Before the federal government steps in with loans, a federal disaster area must be declared. Unfortunately, federal disaster areas are declared in fewer than 50% of floods that cause damage to homes each year. Texas flood insurance covers your property even when a disaster hasn’t been declared, and without requiring you to take out a loan to repair the damage.
Flood insurance is affordableWeigh the facts, and it’s clear there is value in flood insurance. The average yearly premium is $350. The 1993 Midwest flood caused an average of $25,000 damage to property and contents per home. Flood insurance covers property. You can add up to $100,000 of coverage for the contents of your home. Because protection for contents is separate, renters can protect their belongings from flooding, too. When is the best time to get flood insurance? While we usually associate floods with severe weather like hurricanes, they can happen any time of the year. A neighborhood flash flood caused by a sudden storm can strike quickly. Combined with insufficient storm drainage, the damage to your home could be quite serious. With a few exceptions, Texas flood insurance has a 30-day waiting period before it becomes effective, so it’s important to plan ahead so you can be prepared. Contact Farmers agent Angela Johnson today to discuss your needs and give yourself some peace of mind.
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