There's something you
should know: Flood losses are not
covered by your homeowners insurance policy.
Floodwaters have the power to damage not
only your home and sense of security, but also your financial
future. How can you protect your most important investment in
case of flooding?
Option 1: Hope that you'll receive Federal
disaster relief if a flood hits.
Many people wrongly believe that the U.S. government will take
care of all their financial needs if they suffer damage due to
flooding. The truth is that Federal disaster assistance is only
available if the President formally declares a disaster. Even
if you do get disaster assistance, it's often a loan you have
to repay, with interest, in addition to your mortgage loan that
you still owe on the damaged property.
Most importantly, you must consider the
fact that if your home is flooded and disaster assistance isn't
offered, you'll have to shoulder the massive damage costs alone.
The bottom line is that if you're looking for secure protection
from financial loss due to flood damage, Federal disaster assistance
is not the answer.
Option 2: Buy flood insurance and stay
protected no matter what.
When disaster strikes, flood insurance policyholder claims are
paid even if a disaster is not Federally declared. Flood insurance
means you'll be reimbursed for all your covered losses. And unlike
Federal aid, it never has to be repaid.
In general, a policy does not take effect
until 30 days after you purchase flood insurance. So, if the
weather forecast announces a flood alert for your area and you
go to purchase coverage, it's already too late. You will not
be insured if you buy a policy a few days before a flood.
Contact Us for more information on
flood insurance.
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