SATURDAY, MARCH 16, 2013
 Many people assume flood insurance is only meant for people who live in zones with a high risk, but this is often not the case. According to information provided by the National Flood Insurance Program, approximately 25% of flood claims happen in areas with a moderate to low risk and there is about a 26% chance of a flood occurring during a 30 year term for most mortgage holders.
Does a Standard Homeowner Policy Cover Floods?
Many homeowners are concerned about fire damage, tornadoes and other natural disasters, however, only a few homeowners consider the possibility of damages due to flooding. Coverage for flood damage is not provided in a standard insurance policy for homeowners. This type of insurance is an additional policy that provides benefits for property owners who suffer water damage to their property. Everyone living in the United States is eligible for flood insurance, regardless of the zone in which you live.
Three Main Types of Flood Insurance
There are three primary forms of flood insurance policies to choose from. The first type of policy covers only damage to your personal belongings, but not the structure, which is the ideal form of flood insurance for renters. The second type of policy for flood insurance covers only the building, including the equipment and elements required to support the structure, such as the circuit breakers, water heater and furnace. The third type of policy is known as an all-encompassing policy or a preferred risk policy, which covers damage to your personal belongs and the building.
High Risk Flood Zone
Most mortgage providers require the loan holder to maintain a flood insurance policy if the home is located in a high risk flood zone. A high risk flood zone typically includes areas that are near a lake, river or ocean and areas that are prone to flash floods. The flood insurance premium for these areas is typically higher in cost because of the high risk. The most common reason for flooding is excessive rain causing the overflow of streams; lakes and/or rivers too flow into the surrounding neighborhood.
Low Risk Flood Zone
Homes in low risk flood areas can also be at risk of flooding due to broken water mains, rapidly melting snow or poor drainage systems. Homes that are on an incline are also at risk of damage due to mud flow as a result of excessive rain. Even if your home is not in a high risk area, there is still a significant risk of flooding. Hurricane Katrina is a prime example of natural disaster flooding in a low risk flood area.
Does Flood Insurance Cover a Burst Pipe?
One of the most common reasons people file a claim on a home owners insurance policy is water damage. A burst pipe, flooded basement or overflowing washer can cause a great deal of damage and although your standard home owner insurance policy will typically cover specific types of damage, flood insurance will not cover damage due to an unnatural cause, such as pipes that burst and flood the basement.
If you need more information about Louisiana flood insurance, or flood insurance for the rest of the country, call Direct Flood Insurance Agency at 504-812-7811 and we will be able to answer all of your flood insurance questions. From our website you are able to find a quote and buy a policy online. We want to help find the best type of flood insurance policy to suit your needs.
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