Flood Insurance

Flood insurance, too, is sometimes but not always included under the umbrella of homeowner’s insurance. If you already have a homeowner’s policy, it is important to review it and determine whether floods are excluded from coverage. Unless flood damage is explicitly mentioned, the insurance company will not pay a dime for damages suffered in connection with flooding in your home. The potential damages from floods run the gamut from mild annoyances like vaccuming out the basement and replacing some moldy carpet to outright disasters like your home being torn off its foundation. Some areas of the country (such as coastal regions) are officially recognized as high-flood areas where residents are required to buy flood insurance as a condition of buying property. Even in areas where flood insurance is not required, you should conduct your own analysis and decide whether it’d be smart to buy a policy anyway.