Are you a homeowner wondering what exactly your homeowners insurance policy covers in the event of a natural disaster, including flooding? Flooding is one of the most common natural disasters in the United States, and can cause major damage to your home that can be extremely costly to repair, and having the proper coverage could save you from a vast amount of out of pocket expenses. If you are located in Willmar, Minnesota, and have questions about what kinds of natural disasters are covered in your homeowners insurance policy, MG Insurance Inc. can help. Read on to learn more about flood insurance and if you need it.
What Is Flood Insurance?
Flood insurance is classified as a property insurance and it covers a policyholder’s home against losses from any type of water damage caused by flooding from melting snow, heavy rain, dam failure, coastal storm surges, drainage systems blocked by storms, etc. It is a policy that is separate from your homeowners insurance, and provides coverage for any losses due to flooding. Since flooding is the most common type of natural disaster in the United States, there is a good chance that a homeowner will experience flooding at some point during their mortgage. Most homeowners insurance policies do include hazard insurance, which will only cover the cost of some structural damage in certain specified hazardous events; for instance if a tornado causes a pipe to burst, resulting in water damage, however, it will not provide total protection if flooding causes the damage. Therefore, a homeowner will need to purchase special coverage if they want to be fully protected against flooding.
How Does Flood Insurance Work?
A policyholder pays an annual premium for flood insurance, and the cost is based on the deductible they choose and the property’s flood risk. In the event that the insured’s property is destroyed or damaged by a flood, the homeowner will receive a payout for the amount of damages sustained so that the necessary repairs can be made up to the policy’s limit. It is important to note that flood insurance will require a policyholder to purchase separate policies to cover a dwelling and its contents.
Do I Need To Purchase Flood Insurance?
Flooding is likely to occur in any area where it rains, and if you live in a higher flood risk area, there is a good chance that you will experience flooding while living in your home. Even if there hasn’t been a flood in your area for several years, it doesn’t mean it will not happen. In short, it is your best bet to have protection in the event that flooding does occur. Floods cause extensive and costly damage and you will want to ensure that one of your most valuable investments is protected. If you are located in Willmar, Minnesota, and want to determine the best type of flood coverage for your situation, contact MG Insurance Inc. today for a consultation.