Are you properly insured for your home during a flood?

Severe Weather

Floods are one of the most common and expensive natural disasters that occur. They can happen to anyone, whether you live in a flood plain or not.

Home insurance policies vary in every state. Here in North Dakota, home insurance will cover tornados, hail, and most other severe weather except floods. Which is why it’s important to get properly insured.

Flood Insurance started as a FEMA project in the 1970s.
 
Agent and Owner of Superior Insurance, Heidi Rue says, “Homeowner policies quickly became broke when paying for flood insurance and that’s why FEMA and the government brought in the NFIP.”
 
Most people buy flood insurance through the National Flood Insurance Program.
 
It’s an added cost one that many people have trouble justifying because they don’t think it will happen to them.
 
Which is why Rue says most people in North Dakota aren’t properly insured in fact roughly 90 percent of her clients don’t carry flood insurance.
 
Rue says, “So many people think there’s really no coverage there. That’s the other thing about flood insurance– People don’t think there’s coverage but there’s actually a lot of coverage.”
 
A flooded basement can cost up to $25,000, which for her is reason enough to carry it.
 
“People often say that I don’t have coverage for my basement– so why would I even carry the coverage, says Rue. “Well, you do. You have clean up. You have coverage for your furnace, your hot water heater for a freezer, for a washer or dryer. The biggest thing is the clean up in water and sewer back up in a basement with flood insurance.”
 
Flood insurance is also important when selling a home.
 
GoldStone Realty Realtor, Heidi Henke says, “Sometimes closing can be delayed because those repairs have to go through insurance and have to be contracted out and sometimes they actually have to be completed before they can close on a home or sometimes money is held back.”
 
Rue adds to continually check your policies for changes in flood insurance and home insurance because they are constantly changing.
 
Each year, U.S. homeowners suffer millions of dollars in flood-related damages. The average cost for a low-risk flood insurance policy is $534 a year here in North Dakota.

Rue also tells me a sewer or sump pump endorsement on your policy does not mean you have coverage for flood, which most people often mistake.

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