When not to be flooded with the flood insurance myths

Flood is one of the most dreaded natural disasters in the United States. It is the most common as well. It is a misconception to think that the residents living in the coastal areas or hurricane-prone zones are the only ones who need special protection against flood. The residents of other states may also get affected by flood, and lack of protection may land them in big financial crisis. Flood affects the land and property of an individual. The National Flood Insurance Program or NFIP was set up in 1968 to lessen the disastrous effect of flood on the US citizens. NFIP has been helping the homeowners, business owners, and renters with flood insurance plans, with backing from the federal government. Insurance itself can be pretty confusing. People especially seem to have a lot of misconceptions in their mind about flood insurance and the way it works. Read along to know how much you know about flood insurance and whether what you know is true or not.

Misleading myths about flood insurance

You might have come across a lot of information regarding flood insurance. Some of them might be true, while others might be just the misleading myths that have baffled you. Read along to know the facts behind some of the common flood insurance myths and clear up your misconceptions.

1. Myth – A homeowner’s insurance policy may provide coverage for flood. Fact – A standard homeowner’s policy doesn’t offer any kind of insurance protection for the direct physical damages or losses caused by a flood. The same applies for a renter’s policy as well.

2. Myth – Flood insurance is exclusive to homeowners Fact – Insurance protection against flood can be bought for residential as well as for commercial structures. Apart from homes, a flood insurance can also be bought for apartments, condominiums etc. Thereby, not only the homeowners, the renters as well as the business owners can buy flood insurance to protect their property from flood and the consequent financial losses.

3. Myth – The National Flood Insurance is directly sold through NFIP. Fact – The National Flood Insurance Program, or the NFIP can be purchased from various private insurers or insurance companies or even through insurance agents.

4. Myth – The NFIP doesn’t offer any kind of coverage for basements Fact – This not completely true, since the vital building structures of a basement are usually covered by a flood insurance. Coverage is not provided for basement improvements like finished walls, floors or ceilings, and also not for the personal belongings. However, the basic items and other essential equipments stored in a basement are usually covered either through the building coverage or under the contents coverage portion of the policy.

One another predominant myth that floats around is that you won’t need flood insurance, if there hasn’t been any recent flood in the area. Flood is a natural disaster, and natural disasters are unpredictable. Time and again, it has been seen that flood affects regions apart from the designated flood zones. Thus, no matter where you live or at what time you apply for coverage, flood insurance is one of the important insurance protections to be sought after.