You may wonder about flood insurance and whether you should buy it. Is it really necessary? Doesn’t my homeowners or renter’s insurance policy cover these kinds of loses? You may be surprised to know that flood insurance is not part of your homeowners insurance policy. Flood insurance is a stand alone product that you must purchase separately to be covered in the event of a flood of any size.
In 2008 a record breaking flood hit the Midwest that was the worst in Iowa recorded history. Many homeowners made the mistake of thinking that their damage would be covered by their homeowners insurance only to find that they had no coverage. If a water pipe breaks inside your home you are covered through your homeowners insurance policy but if the water flows in from the yard through your windows or doors or seeps into your basement you would only be covered if you had flood insurance. Even if you don’t live in a flood plan you may still need flood insurance. The record breaking flood of 2008 in the Midwest flooded areas of major cities and towns that had never flooded before.
If you did not have a flood insurance policy in place and you were caught in a flood you could be left with nothing. Fema only offers help if the area is declared a disaster area by the state. Even then you can be waiting a long time for aide while you are left to stay in a shelter or with relatives. If you had a flood insurance policy in force than you could have your damages handled faster, have the ability to rent another place or stay in a hotel until damages were repaired.
Renter’s Insurance does not cover damages due to a flood and if the property owner has flood insurance it will not cover your damages to your property. Flood damages on a landlord’s property would only cover the structure and appliances, heating and cooling system and water heater that were owned by the property owner. Any damages to your personal property you would be responsible to replace.
Flood insurance is a wise investment for a landlord or homeowner to acquire. In the event of a flood any damage sustained by your property would have coverage should it be cosmetic or structural. Flood damage can be devastating and mold quickly can destroy property structures if not handled quickly and properly. Mold can even be live threatening and if not treated as soon as possible could cost you property that could have been repaired.
