4 Common Flood Insurance Mistakes To Avoid

Flooding can happen anywhere and at any time. If your home were to be flooded, would you be covered? Not only does flooding cause damage to personal property, but the aftermath can include severe water damage, rotting, mold growth, and other costly problems. Fortunately, a flood insurance policy can give you the coverage and peace of mind you need if a flood ever occurs on your property.

Before you move forward, though, there are a few common flood insurance mistakes you'll want to be aware of and avoid.

Assuming Your Home Insurance Covers Flooding

Perhaps the biggest mistake homeowners make when it comes to flood coverage is simply assuming that their standard home insurance policy includes coverage against flooding. In reality, most homeowners insurance policies do not cover flooding unless a separate "rider" policy is purchased specifically for this type of damage. A typical home insurance policy only includes water damage coverage for pipe bursts, storm roof damage, and similar events.

Foregoing Flood Coverage Altogether

If you live in a known flood plain, your mortgage lender may require you to carry flood insurance. However, even if you aren't required to carry it and don't live in a flood plain, this doesn't mean you shouldn't carry this type of coverage. Flooding can occur at any time, especially in instances of heavy rainfall (which leads to flash flooding), so it's better to be covered regardless of your home's location.

Not Staying Up-to-Date on Flood Plain Changes

Speaking of flood plains, did you know that flood plain maps change regularly? Counties publish new flood plain maps as new information is gathered, so it's important to stay up-to-date on these changes. Your home could suddenly be part of a flood plain, even if it wasn't before. And if you already have flood insurance, this could cause your premiums to rise.

Failing to Read the Fine Print on Your Policy

Flood coverage provides an outstanding level of protection against flooding, but there are still some things that may not be covered by your flood policy alone. For example, this type of coverage typically will not pay for living expenses if you need to relocate while your flood damage is being repaired. However, this may be covered by your home insurance; always check with your agent to find out exactly what's included and what is listed as an exclusion in your policy. From there, you can be well informed and avoid surprises.

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