One of the biggest mistakes a homeowner can make is being underinsured. For many homeowners, being underinsured is a result of overestimating the coverage provided by their standard homeowner's insurance policy. If a flood or other catastrophic event damages or destroys your home, your standard homeowner's policy probably wouldn't give you the protection you need.
Here are some of the ways that a flood insurance company can provide you with both peace of mind and financial protection.
Low Cost for Big Protection
A major misconception many homeowners might have about flood insurance is the cost. For most homeowners, adding flood insurance to an existing home insurance policy will be relatively inexpensive and provide substantial protection in the event of a flood.
Custom Insurance: The best flood insurance policies are specifically designed for your home and your home's flood risks. Although your current homeowner's insurance can add flood insurance to your existing policy, they will often use generalized flood plain mapping software to generate a quote for your home. Flood insurance companies, on the other hand, specialize in only flood insurance. They won't just give you a quote based on where your home is located on a flood plain map drawn up decades ago, they will use sophisticated mapping software and physically survey to generate a quote and offer protections for your home. In most cases, this protection will not only pay above market value for your home but also pay off your existing mortgage and reimburse the cost of any valuables that might be lost if a flood were to damage your home.
Adding to Subtract
Although flood insurance is considered an ancillary insurance product, adding a flood policy can decrease your primary homeowner's insurance policy premium.
Mortgage Insurance: Depending on the type of loan you used to purchase your home, you might be paying for mortgage insurance. This type of insurance is required by many lenders to protect against catastrophic loss. A flood insurance company can help you file paperwork with your lender to demonstrate that your home is protected against the most likely catastrophic event to destroy a home: a flood. This can compel your lender to reduce or remove your monthly mortgage insurance premium, which can actually save you money.
Bundling Up: Merging insurance products can save you money. For instance, bundling your home, flood, auto, and other insurance premiums can reduce your monthly costs while also increasing your coverage.
For more information, contact a flood insurance company in your area.
