Don’t think you need flood insurance? Well, consider where your home sits

Millions of Americans are wet behind the ears and putting their homes and livelihoods at risk based on two incorrect assumptions: Their homes are safe from floods. Even if it does flood, their homeowners insurance will cover the damage.

The latter notion is supported by the results of a recent study by Policygenius, which found that 53.3% of homeowners polled aren’t aware that a typical homeowners insurance policy does not provide flood insurance protection.

Experts say this finding is a wake- up call and sobering reminder not to take flooding or existing insurance coverage for granted.

“Homeowners insurance covers many situations and perils, including some kinds of water damage, so it makes sense that people would assume floods are also covered. But it’s important to know that floods are not covered by homeowners insurance because floods are a very common natural disaster that can lead to expensive repairs for your home,” says Fabio Faschi, property and casualty operations manager for New York City- headquartered Policygenius. “It’s troubling that more than half of our survey respondents don’t realize floods aren’t covered.”

Warren Barhorst, CEO of Iscential in Houston, wasn’t surprised by these survey results.

“Most homeowners are forced to purchase homeowners insurance as a requirement of their mortgage without truly understanding the exposures they face every day. Consider that there is a 100% chance of dying, yet only about 2% of Americans have adequate life insurance coverage. And there’s a 25% chance of your house flooding over the course of your 30- your mortgage — however, only about 15% of people purchase flood insurance,” Barhorst explains.

Richard D’Angelo, president of StormScope Public Adjusters in Hanover, Pennsylvania, recommends flood insurance for any homeowner in a climate zone that has rainy seasons.

“Storms and severe weather events are only becoming more frequent with climate change. I suspect we will start to see increased flooding events in areas that aren’t even FEMA- designated flood zones,” he says. “Having coverage against all perils can help ensure that no matter what happens, you are covered.”

Flood insurance is a separate policy from your conventional homeowners insurance policy. It only covers your home if a flood compromises it, says David Such, a public adjuster at Performance Adjusting, which is headquartered in North Providence, Rhode Island.

“You can purchase flood insurance through the National Flood Insurance Program ( NFIP — a division of FEMA), which is sold through private insurers and administered by the federal government. Or you can purchase flood insurance through private market insurers,” Such notes. “Typically, flood insurance covers the building, contents within, other structures around the home and temporary relocation if necessary. A private flood insurer can usually offer higher limits of coverage versus an NFIP policy.”

If you are in a designated flood zone, it’s often best to get flood insurance coverage equal or close to that of your typical homeowners insurance policy.

“If you are not located in a flood zone, I would recommend coverage equal to approximately 50% to 75% of your homeowners policy, given that there is a lower risk that a flood may happen,” he adds.

Barhorst advises insuring up to $ 250,000 on your home and $ 100,000 for its contents.

“If your home and contents are more valuable and your property has a higher propensity for flooding, I recommend excess coverage to enhance the limit and meet your specific needs,” Barhorst says.

Faschi points out that flood insurance does not cover internal flooding and water damage — such as if your plumbing leaks and causes a flood in the basement. To protect against these perils, you can add a water backup coverage endorsement to your homeowners insurance policy.

The cost of flood insurance will vary based on the flood zone you live in, your home’s age and build, and how much coverage you need.

“The average cost of an NFIP flood insurance policy is $ 707,” notes Faschi, citing recent data provided by FEMA.