Having your home destroyed by water can be disheartening. Even more so is that fact that most victims do not have coverage for it. They purchase homeowner's insurance believing that is enough. Only after disaster strikes do the realize that homeowner's insurance excludes flood damage. Generally, the only time a homeowner has flood insurance is if their mortgage company requires it. A & B Insurance Agency Inc. wants to help you understand flood insurance so that your home will be protected in case of disaster.
What is flood insurance?
Let's start by understand what flood insurance is and what it is not and how it is calculated. First, it is good to understand that the government sets all policy rates and backs these policies. That should give you peace of mind. Next, let's look at what is and is not covered.
What It Covers:
- Flood insurance only covers external sources of flooding such as rain, and the overflow of lakes and rivers.
- If you choose to pay a higher premium, it can cover the contents on the main floor.
- It may also cover some major appliances, such as refrigerators, stoves, etc.
What It Does Not Cover:
- It absolutely does not cover water and sewage issues. A separate policy should be purchased to protect your home from these damages.
- It also does cover the contents of your basement.
How do I know what I need?
While speaking directly to an agent can give you a more specific answer here, there are a couple of things to consider. The Federal Emergency Management Agency, or FEMA, maps out and defines flood zones on flood hazard maps available to the public. These maps will tell you how high- or low-risk your area is. If you live in a high-risk zone, otherwise known as a Special Flood Hazard Area (SFHA), you will be required to have more coverage. If you live in a moderate- or low-risk zone, you may only need what is called a Preferred Risk Policy.
A & B Insurance Agency Inc. is here to help Michigan residents get the right flood insurance coverage. Call or come by today to speak with an agent!