According to the US Disaster List, a flood is one of the most dangerous and devastating natural disasters in the country, so it is strongly recommended that homeowners carry flood insurance policies. Many property owners find out too late and risk financial ruin once a flood has damaged their property.

Importance of Flood Insurance

If you live in an area prone to flooding, then you already understand the importance of having a flood policy and you probably have coverage. However, people who live in areas that are considered flood-safe should also consider getting coverage.

According to the US Climate Communication Science and Outreach Report on Climate Change, a minor change in global temperature can lead to drastic changes in global climate. The report highlights that extreme climate changes can cause severe droughts, rains, storms and floods in different cities. As a result, heavy rains and flooding would be more frequent and intense.

Given the report, even if an area is marked flood-proof, it’s a smart move to sign up for flood insurance. Most private insurance providers also offer conditional flood insurance. For example, if a water main bursts due to a fire, your flood insurance will cover property damage and replacement costs.

Home and property insurance vs. flood insurance

Many people misunderstand that a specific flood policy, a separate policy, is needed to cover above-standard flooding for homeowners and commercial properties. Residential and commercial property insurance provides coverage for structural failure, fire, building damage, water leaks, and the like. However, flood insurance provides coverage against damage caused by rising water levels.

Why choose private insurance?

The national insurance program offers a number of benefits, which is ideal if you are only opting for basic insurance coverage. However, if you want an insurance package that suits your needs, choosing private insurance may be a better idea. Private insurance benefits include:

• Building coverage (including foundations)

• Coverage for HVAC, plumbing systems and electrical systems

• Coverage for furniture, clothing and kitchen utensils such as microwaves and dishwashers.

• Coverages for possessions including temporarily installed carpeting, portable air conditioners, removable microwaves, refrigerators and more.

• Coverage of related expenses, including temporary housing

Flood insurance is extremely important in light of changing weather conditions and the financial risks associated with not having flood insurance. Talk to your agent or border to determine what coverage you need.