Flood Insurance: How it Works and Why Homeowners Need it

When it rains, usually, it pours, and the results can be quite devastating. 

Flood insurance is the type of coverage not found in most standard homeowners insurance policies. It was created to protect the home and the owner’s personal property from every type of flooding (coastal, river, flash, or groundwater) that occurs. 

What is Flood Insurance?

Floods are the most common natural disaster in the United States today. Often, the results are record numbers in damage following each storm. Flood insurance provides additional coverage to an already existing homeowner’s policy. Usually, standard coverage includes damage from bursting water pipes and leaky faucets inside the home. Still, homeowners insurance will not protect a policyholder from damage that occurs by a nearby river overflowing or unexpected flash floods that forces water into the house. It’s why the federal government implemented flood insurance to assist homeowners in rebuilding or replacing their homes or personal items after a natural disaster. 

Homeowners in all 50 states have the opportunity to purchase flood insurance from the National Flood Insurance Program (NFIP) that is administered by the Federal Emergency Management Administration (FEMA). Currently, these programs provide 95 percent of all flood insurance policies in the marketplace today. FEMA doesn’t sell flood insurance directly, but the federal agency works with several companies like ACU Insurance Services of League City, TX who offer flood insurance coverage to local homeowners. 

How Flood Insurance Works?

All homeowners can buy flood insurance as it doesn’t matter whether you live in a FEMA deemed high-or-low-risk flood zone area. This includes homes that reside near hillside property as they can be damaged by mud-sliding from a violent rainstorm. Flood insurance covers the cost to rebuild the home or pay out the actual market value of the home if the structure is no longer standing. The price for personal items will be based on a cash value that will be determined by an appraiser.

No home is completely safe from flooding. When water comes into the house, the cost of the damage can be staggering to a homeowner. Speak with a representative from ACU Insurance Services of League City, TX to discuss the advantages of having flood insurance on your home. Don’t wait until it’s too late.