Sherzer Insurance Blog
Floods are among the most devastating natural forces. Damages and losses caused by flooding on houses can make homeowners cash strapped. States near the Gulf of Mexico are among the flood risk areas since most hurricanes made their way to the continental United States through these places. Storms can bring heavy downpour and storm surges that flooded coastal and low-lying areas.
With hurricanes becoming more potent due to climate change, homeowners need to secure their homes from damages caused by floodwater. And these types of damages are costly for most American households. Last year, the United States suffered an estimated $3.75 billion worth of damages in properties and crops due to flooding.
Importance of Flood Insurance
Nowadays, if you are a homeowner, flood insurance is one of the essential coverages that your home should have. It is the kind of insurance policy that can provide financial protection to your house and even your personal belongings against the damages brought by floodwater or storm surges.
The insurance policy can cover the repair costs for the damages in your house's structure, such as foundations, walls, ceilings, floors, plumbing, electrical wiring, heating, ventilation, and air-conditioning (HVAC) systems. Flood water damages to clothing, valuables, furniture, and other personal properties can be covered by flood insurance.
When talking about your flood insurance cost, there is no across the board amount for all homeowners. Many factors can contribute to the amount of premium that you will be paying. The location of residence and the type of coverage you need are contributing factors to your insurance cost.
Your Home's Location
The location of your residence is possibly the biggest driver of your flood insurance cost. Your geographical location can tell how prone you are to disasters. If your house is sitting in a flood-prone area, it is a good indicator that insurance companies will charge you more on flood insurance.
If you are residing in a coastal area known as part of the hurricane pathway, expect that you will have a higher flood insurance premium than those in other areas.
Homes that are not situated in flood risk areas can have inexpensive flood insurance.
Type of Coverage
Like in any other insurance policy, the type of coverage is among the most significant drivers of your flood insurance cost. Standard flood insurance has two primary coverages: building property and personal property coverage.
The size and design of your property contribute to the amount you will be paying. If you have a basement or crawl spaces, your insurance cost could increase by up to 20%. If your home utilities such as water heater, ventilation system, or electrical system are found below the Base Flood Elevation, you should expect a higher premium. But, if those utilities are located on higher ground, it could significantly reduce your insurance cost.
These factors are vital when it comes to Flood Insurance costs. Forces of nature can be devastating and costly at the same time, so make sure to have this checklist to maximize your flood insurance policies. It's better to be ready and well informed so you don’t have to worry when times of tragedy come.
At Sherzer Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (239) 673-9301 or Click Here to request a free quote.