Myths about Flood Insurance

Flood insurance is not covered by typical insurance and there are a lot of questions people have regarding it. Things you may have heard may not necessarily be true, so it’s important to know these myths and get the coverage you need. Speak to an agent at Neff & Associates Insurance Services Inc to discuss flood coverage for Pismo Beach, CA.

1. You Have to Live in a Flood Plain

Even if you don’t live in a flood plain, you can still purchase flood insurance. Prices for flood insurance are based on the home value and whether or not it’s in a flood plain, so if you aren’t in a flood plain the insurance may be less costly.

2. It’s Just for High-Risk Areas

Even if you aren’t in a flood plain there is still a chance for a flood. It is important to weigh out your options for insurance.

3. The Insurance Will Cover Everything

Depending on the cost of your house, the federal insurance will cap out at $250,000. You can buy “excess flood insurance” through a private carrier to cover anything above $250,000 if your house is worth more. Flood insurance won’t cover living expenses while the house is being worked on.

4. Your Homeowner’s Insurance Will Cover Floods

A standard home insurance policy won’t cover flood damage. Remember, there is a 30-day waiting period between when coverage kicks in and when you buy, so you have to plan ahead and can’t just buy insurance when a storm is looming.

5. Water Damage Is All the Same

Not all water damage is the same, according to your insurance policy. If water comes in through the roof after a storm that doesn’t require flood coverage, but if a body of water overflows and damages your house that requires flood coverage.

If you have questions about flood coverage in Pismo Beach, CA, speak with Neff & Associates Insurance Services Inc.