For most of us, purchasing flood insurance may not seem like a priority. After all, any property loss or damage due to flooding is automatically covered by a homeowners' or renters' insurance policy — right? Wrong. Contrary to popular belief, homeowners' and renters' insurance does not cover any type of structural or property loss or damage due to floods.
Flood insurance covers all flood-related property and structural damage to your home or business. If you’re a renter, then flood insurance will cover all damage to your personal belongings.
Here are five reasons you should consider purchasing flood insurance:
1) Floods are more common than you think, especially with today’s increasingly uncertain weather patterns. According to the National Weather Service, floods are ranked No. 1 among natural disasters in the U.S. During the last decade, floods have cost home and business owners approximately $24 billion in losses.
2) With seasonal climate changes, it’s a good idea to purchase flood insurance as soon as you can. After you purchase your policy, you’ll have to wait 30 days for it to go into effect, so it’s best to buy it now to ensure that you’re covered.
3) If you have a mortgage from a federally-regulated lender and you live in a high-risk area, then flood insurance may be mandatory. Check with your mortgage lender to find out what the requirements are on your home loan. Even if you don’t live in a high-risk area, your lender will probably recommend flood insurance as a safe investment for your property.
4) You can rest assured that you’ll be reimbursed after a flood. Plus, if you want to start rebuilding right away, you can ask for a partial reimbursement payment immediately after the flood damage has occurred.
5) You may qualify for a discount on your flood insurance policy. If you live in a neighborhood that participates in an NFIP Community Rating System (CRS), you could be eligible for discounts ranging from 10 percent to 45 percent, especially if you live in a high-risk area. Talk to your mortgage lender to find out if your community is eligible.Purchasing a flood insurance policy will add a small amount to your homeowners' or renters' insurance payments every month, but it will be well worth it to know that you’re protected against a natural weather event that occurs far more often than most of us realize. For more information, call Direct Flood Insurance Agency at 504-812-7811 and we’ll be happy to answer all your questions concerning Louisiana flood insurance.