Come hell or high water, your property is at risk without flood insurance.
If you live in a flood-prone area, insurance could mean the difference between peace of mind and financial ruin. Yet with the many providers around, it can be tough to figure out which flood insurance is right for you.
Here are the top five factors to consider when choosing flood insurance.
1. Your Risk Level
Once you’ve established whether you need flood insurance, you also need to consider your risk level.
This will influence a few other parts of the process, like the level of coverage you should opt for. Higher risk usually means higher premiums, too.
You can establish your risk level by looking at the history of your property and that of your area. This should tell you if it has a history of floodings, such as from high rainfall or snowmelt.
2. The Cost
Of course, the price you’ll pay is always one of the major factors when choosing insurance.
The cost of flood insurance will vary from place to place and insurer to insurer. Generally, the higher the risk, the higher the premiums. Still, comparing insurance costs across a range of providers will help you choose the most affordable option for you.
Take a look at www.betterflood.com for more info on the cost of flood insurance.
3. When to Get Flood Insurance
It may not surprise you to learn that flood insurance doesn’t provide instant protection. Most policies have at least a thirty-day period before you can make a claim.
So you’ll need to consider when to get it. If your flood risk is seasonal (as many are) then you can often avoid paying insurance costs during the safer months. Still, be sure to get well ahead of high-risk months.
4. Where to Get Flood Insurance
There’s a lot of choices out there when you’re shopping for insurance. That also means a lot of variety in the kind of service you’ll get.
Choosing the right insurer is essential. Some insurers will be less likely to pay out when you need to make a claim, which could leave you high and dry in all the wrong ways. Check out a provider’s reputation before you buy for peace of mind.
5. Do You Use Your Basement?
Finally, here’s an overlooked factor when choosing insurance: do you use your basement?
Many flood insurance providers won’t cover the cost of damage from flooding in a basement. The rationale is simple. Basements are at a high risk of flood damage, so any goods stored there are at risk too.
If you have stored items to protect in your basement, either move them or look for an insurer that will cover basement possessions.
Choosing Flood Insurance the Right Way
These five things to consider nail all the key elements of choosing flood insurance that will be there when you need it. Keep these in mind, and you’ll know you’re covered if the worst should happen.
Looking for ways to get the most out of your property? Make sure to check our Real Estate section often for more.