Flood Insurance: Tips You Need to Know

​Flood insurance is an essential plan that most homeowners should have, especially for those who are living in flood-prone areas. However, only 1 out of 7 owners are obtaining this policy as a safety net to protect them. To help you understand, here are some tips that you need to know about flood insurance. 

Flood Insurance: What Is It?
Flood insurance is a specific plan that protects your home and properties against the loss from floodwaters. This is additional protection since home insurance does not cover flood damage. If you live in a location that has a high flood risk, and you have a mortgage, you will be required to have this type of plan by your lender. 

What Does It Cover?
This type of plan covers a lot of things, but it depends on circumstances where it won’t be included in the way the flood happens. Here are some inclusions and exclusions of the coverage:
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Inclusions:  

• Home and its foundation
• Carpeting
• Electrical and plumbing systems
• Electronics
• Home Appliances
• HVAC equipment
• Clothing
• Paneling

Exclusions: 

• Cash
• Stock Certificates
• Precious Metals
• Loss of Income
• Damage to Vehicles

How Much Does it Cost?
On average, it will cost you around 700 dollars annually; if you live in low-risk areas, it can lower down to hundreds of dollars per year. 

How Long Will It Take To Obtain Flood Insurance
You shouldn’t wait until you need to get flood insurance, or else it would be too late. The reason is, usually, the coverage takes 30 days after purchasing the plan to be effective. However, there are some exceptions to this.

• If you obtained the plan in connection with a loan, then there’ll be no waiting period. 
• If you get the plan after an update or revision of the Flood Insurance rate within 30 months, then there will be a one-day waiting period. 

Conclusion: 
Regardless if you live in a low or high-risk area for flood, it's always an excellent idea to obtain a flood insurance plan before actually needing it. Having an insurance plan can always guarantee you peace of mind in case such catastrophes will hit you. 

At American Eagle Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (225) 667-7377. Get your free quote today by CLICKING HERE.