Thinking all flood insurance is too expensive
Some flood insurance policies can cost less than $400 a year, less than car insurance. You can choose how much coverage you need, depending on how much of your home and items you want to protect. Also be sure to research any discounts you could get from having things like a sump pump installed, or double-paned windows. These could lower your policy by large amounts!
Assuming you only need flood insurance if you live in a disaster-prone area
Floods don’t only happen after a hurricane though. In fact, 1 in 4 flood insurance claims take place in low or moderate risk areas. Floods could happen in your home due to frozen pipes that burst, or a large water leak. Floods can also happen due to lake, creek or river overflow, or large amounts of rain and backed-up storm drains.
Not looking around enough
The flood insurance policy you choose should be the best possible policy for your situation. To achieve this, you should get as many possible quotes as you can and know as much as possible with each potential decision. Even better, take the time to ask friends and family in your area if they have flood insurance and what company they chose.
Assuming you will receive federal aid if a flood occurs
Federal aid is tricky and not so reliable. While their aid rarely comes anywhere close to full coverage, you may or may not even qualify for a small loan. On top of that, it’s very unlikely that you’ll receive any aid without the president himself declaring your area a disaster area. A perfect example of this is, of course, hurricane Katrina, and the many victims left without aid or a home in the after months.
Forgetting to ask important questions
Before you go signing any papers, you need to make a thorough (and long) list of any and all questions or concerns you have to ask each provider you’re considering. This list should include their policy on rate increases, their discount policy, and their types of coverage, among many others. Take the time to research questions and concerns about flood insurance online to be sure you’re asking everything you need to.
Waiting until it is too late
The worst possible flood insurance mistake you could make? Waiting until it is too late. While some insurance companies will still sell you a policy when your area is likely to be hit by a flood very soon or has already been hit, it would be a t a much higher rate. If you are definitely getting flood insurance, the sooner the better.
Assuming you are already covered if you have home owners insurance
While some companies offer a combined home and flood insurance policy, not all do. Also, those added *extras* are rarely any where near as much coverage as you would get from a separate flood insurance policy. If you do think you have flood insurance or are not sure, give your insurance company a call and simply ask. They should be able to provide you with all the details.
Believing you will not qualify if a home insurance company turned you down
Just because a different type of insurance turned you down for financial reasons or otherwise, does not mean all flood insurance providers will as well. If your community is in the national flood insurance program, there’s no way you will be turned down. You will never though until you ask though, so call them up now!
