4 Things You Need to Know About California Flood Insurance
It’s no secret that standard home insurance policies do not cover floods, but do you even need flood insurance in the first place?
Well if recent research is to be believed, over 8 million people in California are at risk of coastal subsidence and the flooding that goes along with it. Even if you aren’t in a high-risk zone, it is important to keep in mind that any property can experience flooding.
There are plenty of myths out there, so we’ll break down the facts about California flood insurance for you. Here are 4 things to keep in mind when you are considering flood insurance in California.
1. How Much Does California Flood Insurance Cost?
First on almost everyone’s lists is going to be the cost of flood insurance.
The cost of flood insurance varies greatly and is estimated based on a large number of factors. Some of these factors include the style of your home as well as its age.
However, the most important factor would be your home’s location. If you live in a high-risk zone, you may end up paying more.
2. Do You Need Flood Insurance?
Chances are, if you live in a high-risk zone then you may be required to purchase flood insurance.
It is important to take note that flood insurance is almost never included in standard homeowner’s insurance and therefore will need to be purchased separately. Don’t be fooled, homeowner’s insurance may include coverage for “water damage” but this is referring to burst pipes, not major flooding.
Make sure to do your research and check out FEMA’s flood maps to see if you’re located in a high-risk zone.
3. Make Sure You Know Your Policy
Before committing to flood insurance, make sure it covers what you need.
One example is the difference between direct and indirect coverage. Dir4ect coverage is pretty obvious: it covers everything that has been damaged due to a flood, specifically the water damage.
Indirect coverage casts a wider net. With indirect coverage, you will be covered in the event that the flood sparks new disasters that may further impact your property. This can include fires, damaged sewer systems, and much more.
4. Research Your Coverage Options
At this point you have realized that you need flood insurance, but where do you start?
It is important to check out your choices and see what sort of coverage options may be right for you. There are a bunch of different policies out there depending on where you live and what type of risk you have.
Do you need the best flood insurance because you live in a high-risk area? Or would you rather go with cheap insurance to save a little each month? Either way, make sure to research your options before choosing.
Don’t Get Washed Out Looking for Flood Insurance
Now you have the tools to determine whether or not you may need a California flood insurance policy for your home. Remember that preparing for the worst may cost you a little now, but the peace of mind may be worth it.
Looking for interesting reads on homeownership? Check in with our blog often for more!