Hurricane Ian put a renewed focus on flood insurance and protecting your assets. Insurance companies are estimating damage of up to $60 billion.
While hurricane-force winds caused significant damage, widespread flooding was also a major contributor. Flooding has the potential to wipe out your home’s interior. Without urgent action, mold can set in and make the home uninhabitable.
Flood insurance is your only saving grace to recoup losses. Read on to learn about your options for insurance policies. Explore five flood insurance shopping mistakes to avoid so that you are properly covered.
1. Thinking You Do Not Need Flood Insurance
Many homeowners make the mistake of overlooking flood insurance. They mistakenly believe that only homeowners who live in a flood zone need insurance.
The truth is that homes are flooded all the time, regardless of location. Flooding may be caused by a weather event, burst pipe, or other unfortunate events. It is wise to carry insurance to protect your property.
Affordability is one benefit of acquiring coverage in a non-flood zone. Because the risk is less, flood insurance providers offer plans for much cheaper.
2. Failing to Shop Around
You should not accept the first flood insurance policy that you come across. The best strategy is to shop around for the best insurance plan.
This approach has several benefits to take advantage of. For starters, you can secure the most affordable premium. Also, you can secure the best value in terms of coverage.
3. Failing to Read the Fine Print
It is important to carefully read the insurance terms and conditions. Many homeowners make the mistake of simply combing over the declarations page.
Instead, you need to dive into the finer details, such as exceptions and limitations. This way, you do not sign up for a policy that is less generous than you originally believed.
4. Insurance for a Rental Property
Flood insurance is not simply for homeowners. Renters should also consider flood insurance to cover their personal property.
Flood insurance for rental property is a wise move. There is no guarantee that your landlord will cover your personal items. If there is significant water intrusion, your furniture and more may be destroyed.
5. Make Sure the Insurance Company Is Legitimate
Many homeowners fail to thoroughly research the company they are buying insurance from. In today’s digital age, there is so much information available online about insurance companies.
Reading online reviews is a simple step to take. Here, you can learn whether the company has a positive or negative reputation with its clients. The Better Business Bureau also tracks complaints against companies and is worth reviewing.
Your Guide to Common Flood Insurance Shopping Mistakes
You are now ready to avoid the pitfalls that many homeowners and renters suffer when shopping for flood insurance. Taking steps like comparing insurance costs and carefully reading the fine print are critical. You should also research any potential insurance companies.
It is also wise to ditch the conventional wisdom. Coverage is still important if you live outside a flood-zone or are just renting. If you enjoyed this article about common flood insurance shopping mistakes, check out our blog for more great content.