When it comes to insurance coverage, flood insurance is by far one of the most underrated and misunderstood. People tend to be confused as to how these types of insurance policies work and who actually needs them. Because of this confusion, it leaves many Houston, TX property owners inadequately protected. Heydari Financial Group wants to separate fact from fiction, so here are a few myths surrounding flood insurance coverage.
Flood Insurance Is Only Needed If You Live in Designated Flood Zones
Flood insurance is most certainly required if you live in a designated flood zone, but even when you don’t, flood insurance can prove to be beneficial. There is always some level of risk and liability related to flooding, regardless of where you live in the country. To some capacity, each of the 50 U.S. states are prone to flooding.
Home Insurance Protects You Against Flood Damage
Many people believe that their home insurance will protect them against flood damage, and because of this, these people have paid a substantial amount of money. A typical homeowners insurance policy excludes flood-related damage unless it is a result of a storm. Therefore, separate coverage for flood damage is necessary to ensure you are properly protected in the event of a flood.
Flood Insurance Covers All Associated Damage
While a lot of property and personal effects damage is covered with a flood insurance policy, there are certain restrictions. For instance, as a general rule, preventable damage caused by moisture, mildew, or mold is not covered. Most of these policies also exclude damage that occurs to a vehicle or objects that are not within the insured structure. This can include decks, patios, fences, septic systems, and swimming pools.
If you need help in determining your individual flood risk in Houston, TX, contact our insurance team at Heydari Financial Group.