Can You Afford To Replace Your Home After it Flooded?

Protect your home with flood insuranceProtecting your home isn’t always about having an alarm system or a guard dog.  Sometimes it’s about protecting it from the weather.  Unfortunately, even the most aggressive guard dog can’t help.  Insurance is where you are going to want to focus your attention, especially when it comes to Mother Nature.

When it comes to replacing your home after a flood, it’s common to think that traditional home owner’s insurance will cover it, but this is not the case.  Flood insurance is a specialized kind of insurance on your home that will protect your home, by enabling you to repair it, if you get flood damage.

What to know about flood insurance

Flood insurance is a different kind of insurance above and beyond traditional home owner’s insurance.  Flooding and rain can happen all year round, and – as the saying goes – “if it can rain, it can flood”.  Even if you live in a zone that is only supposed to be a 500-year flood, there have been 3 of those to hit in as many years, as noted in this Insurance Journal article.  The damage has been catastrophic and could result in as much as $853 billion.  So, while those odds seem slim, no one really knows for sure. So, don’t think that because your home hasn’t flooded before or that you are not in a flood zone, that you don’t need it. (Ask, those who lost their home to Harvey who didn’t have flood insurance, or who never flooded before or who weren’t in a flood zone, if they have insurance now or wish they did when Harvey hit)

The world is changing – fast, and the best way to protect yourself (both in terms of your home and your business) is through the proper insurance, There is a 30-day waiting period for flood insurance to kick in, so if you are considering getting flood insurance, make sure that you get it today and not wait until the day or week before a big storm or hurricane.

The cost of flood insurance

Flood insurance costs vary and depend upon the size of your home and contents coverage.  But let’s say that you paid about $500 a year for flood insurance, which isn’t’ unusual and it covered up to $250,000 of your home’s damage (the actual home dwelling), and up to $100,000 for personal contents (the stuff inside your home) and you lost everything in it due to a hurricane flooding, wouldn’t that $500/year seem pretty cheap to replace your home and contents?

Sure, $500 sounds like a lot but even consider that you paid that for 10 years ($5,000), which also seems like a lot, but again, compared to the 250,000 and 100,000 that it could cover. Let’s even take that farther and if you paid that same $500 for 50 years, that’s $25,000, and seems like so much money, but again, compare that to replacing your home and contents (per the policy up to $350,000), all in a year’s time versus repairing it on your own over many years. Well, unless you have $350,000 cash laying around.  It’s that some serious peace of mind, knowing that you don’t have to replace it on your own or come up with the labor or money?

To make flood insurance obsolete, you’d need to pay it consistently for 700 years.  Hate to break it to you, but…anyway, you get the point. It’s a wonder more folks don’t have flood insurance. So, contact your insurance agent or Paula Smith Insurance for a review of your insurance coverage and let’s protect your home and belongings today.

Preparing for a flood & hurricane season

Being ready for a flood and hurricane season is always a good idea.  When it comes to protection, it’s easy to think that you can rely on FEMA Assistance to help recover your losses, but remember that this is only in place for the essentials and won’t replace all of your belongings or replace/rebuild your home.  So, if you lose your entire home, you will not be given a lump sum to completely build another one.  This is why flood insurance is so important to have in place.  You can use both if needed, but relying on FEMA on its own may not work in your favor.  That’s why protecting your home with the right insurance is always a good idea.

No matter what time of year or how “freak” the chances may be for flooding, protect your home and your hard-earned money by having the proper flood insurance in place. It really is worth it. Please contact Paula Smith Insurance at (281) 488-8880 with any questions you may have about your home insurance, flood insurance, windstorm or any of your other personal insurance needs.

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