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The importance of flood insurance

By October 8, 2024Insurance

Why You Need Flood Insurance

 Floods can happen unexpectedly, and the damage they cause can be devastating both financially and emotionally.

Standard homeowners insurance policies do not cover flood damage. This means that in the event of a flood, you would be responsible for all repair and replacement costs out of pocket. Floods can occur due to heavy rains, hurricanes, poor drainage systems, and even rapid accumulation of runoff. Without flood insurance, the financial burden of recovering from a flood can be overwhelming.

 What Flood Insurance Includes

Flood insurance policies typically include coverage for both the structure of your home and your personal belongings. Here’s a breakdown of what is generally covered:

  • Building Property: This includes the physical structure of your home, such as the foundation, electrical and plumbing systems, built-in appliances, water heaters, and flooring.

  • Personal Property: This includes personal belongings like furniture, clothing, electronics, and other valuables. Certain limits may apply to items like artwork and jewelry.

  • Additional Living Expenses: Some policies may cover the cost of temporary housing and living expenses if your home is uninhabitable due to flood damage.

Statistics on Flood Damage Costs

The financial impact of flood damage can be significant:

  • According to FEMA, just one inch of water in a home can cause up to $25,000 in damage.

  • The average flood claim for homeowners between 2014 and 2018 was around $43,000 .

  • In 2017 alone, the National Flood Insurance Program (NFIP) paid out over $8 billion in claims following hurricanes Harvey, Irma, and Maria .

These statistics highlight the importance of having adequate flood insurance coverage to protect your home and personal belongings.

Merit Insurance Group can provide you with the right coverage at the right price to prepare for today’s risks and to plan ahead for unforeseen losses. Call us at 708-845-5466 or visit our website at www.meritinsurancegroup.com