085: 4 Myths about flood insurance

085: 4 Myths about flood insurance

Here are some misconceptions about flood insurance I would like to discuss:

  1. You must live in flood zone – Not true. Anyone can purchase it and you don’t have to live if flood zone. It’s cheaper if you don’t live in a flood zone. And if you are a renter and live in a condo, then you can just get a coverage for your personal property.
  2. Water Damage is water damage – not so fast! If there's a storm and your “roof comes off and water comes through, that would be covered under your homeowners policy. Versus a flood situation where the riverbank overflows and you look out of the front of your house and you need a boat to get from point A to point B.
  3. My homeowners policy covers it all – not at all. You’ll have to get coverage separately.
  4. All my property and possessions will be covered – not all.
  • What’s covered – covers the cost to rebuild or the actual value of your home (whichever is less), includes home foundation, electrical plumbing system, kitchen appliances, carpet, floors, clothing, furniture
  • What’s not covered – trees, plants, walkways, decks, patios, fences, swimming pool & loss of income.

Now, you should have a good of why you might need to consider adding Flood Insurance as part of your Risk Management programs.

 
Anna Sergunina
anna@adviceonly.net

I passionately believe that in order to live a life of fulfillment and joy, we must genuinely serve each other in any way possible. I found my mission in life to serve others via financial planning. Anna regularly writes about personal finance. Her work appears on Business Insider, Nasdaq, Nerdwallet, among others. Anna is the creator of Money Flow system.

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