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Hey,
Who Needs Flood Insurance?
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Do I Need Flood Insurance?
The simplest way to
answer this question may be to walk to the nearest mirror. If the
person you see in the mirror owns any significant amount of property
that can be damaged or destroyed by water, then you should seriously
consider buying flood insurance. Most persons may buy coverage offered
by the National Flood Insurance Program. If your community doesn't
participate in the program, you'll have to look into coverage from
private insurance companies.
What's The Likelihood
Of Suffering A Flood Loss?
The chances of your business,
home or personal property being damaged by a flood depends primarily
upon where you live. A flood loss also depends on other factors
such as: how much of a flood warning you receive, the level of flood
precautions that are taken by yourself (such as moving personal
property from lower levels to higher levels), and the precautions
taken by your community (such as the use of flood controls in construction
standards or sandbagging threatened areas).
Since floods are related
to weather conditions and tend to have widespread effects, your
chances of a flood loss are significantly higher than experiencing
many of the types of losses that are covered under your homeowner
policy, such as fire or windstorms. Many people have the obsolete
belief that flood insurance is only needed if you live in a flood
prone area.
I Live In A Flood
Zone?!
If you have ever heard
the term "flood zone," you may think that it refers to
locations that are particularly vulnerable to flooding. The truth
is that, wherever you live in the USA, you live in a flood
zone. While your area may have a lower chance of flooding than a
coastal area or a location situated near a body of water, your area
could still experience flooding. A very dry part of the country
can be susceptible to flash floods; hilly locations may be harmed
by drainage; snowy locations may suffer from heavy snow thaw; other
areas may suffer deluges or flooding due to a heavy rain season
which has soaked the surrounding soil. So, if you've insured yourself
against fire, wind and other causes of loss, it certainly makes
sense to also protect yourself from the potential of a flood loss.
Why Worry When Disaster
Coverage Is Available?
You may believe that,
even if you suffer from a flood, your loss may be taken care of
when the government declares your location to be a disaster area.
However, you're still taking a couple of large risks. First, your
flooded locale may not be deemed a disaster area. Second, being
designated as a disaster area is not a bargain. Disaster area status
only gives citizens access to government disaster loans. IF you
qualify for assistance, you have replaced insurance protection with
an obligation to pay off a large, long-term loan. Is it worthwhile
to gamble on an opportunity to pick up more debt? You'll find flood
insurance to be a cheaper and much more valuable alternative.
Don't Be "All
Wet"
You don't have to leave
yourself unprotected. Your agent, an insurance professional, can
help you with detailed information on the National Flood Insurance
Program. You can also ask for help in getting the coverage you need
to "keep dry" and secure in the face of a flood.
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