Many homeowners do not realize that their homeowners insurance does not include flood coverage. Unfortunately, this is not discovered until it is too late. If you are buying homeowners insurance, it is important to be able to separate the truth from fiction about flood insurance. To help you do this, here are some myths about flood insurance and the truth.

Flood Insurance Is Not Available in High-Risk Areas

One of the biggest misconceptions about flood insurance is that you can only purchase it if you live in an area that has not been designated a high-risk area for floods. The truth is that even if you cannot get coverage through your usual provider, you can likely purchase coverage from the National Flood Insurance Program.

The program was created through an act by Congress. The coverage is available to homeowners as long they live in a community that is participating in the program. Many of these communities are in high-risk areas. To determine if your community participates, check the FEMA website or contact the agency by phone.

The Coverage Extends to Everything

Another misconception that often leads to homeowners being left unprepared after a flood event is that once you have flood insurance, it covers everything that is damage. Although flood insurance does provide additional coverage that helps to take care of a lot of the damage that you might experience, it does have limitations.

For instance, any mold damage that could have been avoided might not be covered. When shopping for flood insurance, it is important that you ask about the limitations and determine if there are other coverage options that can help close or minimize the gap in coverage.

Flood Insurance Is Not Necessary in Low-Risk Areas

Flood insurance is not just for high-risk areas. It is also for low-risk areas. Even though you are not living in a high-risk flood area, there is still a chance of flooding. Unfortunately, if you are not prepared, you could be faced with damages that your homeowners insurance will not cover.

The amount of coverage you need will vary. Opting for the minimum in coverage will at least provide you with some help if a flood does occur in your area.

Consult with your insurance broker to learn more about flood coverage. He or she can help dispel further untruths about the coverage and determine the right level of protection for you. For more information, contact companies like United Insurance Agency Inc.

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