Here are some misconceptions about flood insurance I would like to discuss:
- You must live in flood zone - Not true. Anyone can purchase it and you don’t have to live if flood zone. It’s cheaper if you don’t live in a flood zone. And if you are a renter and live in a condo, then you can just get a coverage for your personal property.
- Water Damage is water damage - not so fast! If there's a storm and your "roof comes off and water comes through, that would be covered under your homeowners policy. Versus a flood situation where the riverbank overflows and you look out of the front of your house and you need a boat to get from point A to point B.
- My homeowners policy covers it all - not at all. You’ll have to get coverage separately.
- All my property and possessions will be covered - not all.
- What’s covered - covers the cost to rebuild or the actual value of your home (whichever is less), includes home foundation, electrical plumbing system, kitchen appliances, carpet, floors, clothing, furniture
- What’s not covered - trees, plants, walkways, decks, patios, fences, swimming pool & loss of income.
Now, you should have a good of why you might need to consider adding Flood Insurance as part of your Risk Management programs.