Flood insurance covers more than the damage to your home’s structure and outside property. Unfortunately, the wording of most homeowner’s insurance policies fails to include coverage for water damage to the home’s interior following a flood. BES & Associates Insurance of Walford, MD, can offer insight into how flood insurance is a wise financial advantage.
Why Flood Insurance is Important
Without flood insurance, homeowners would be in financial ruin after paying for repairs following a flood in their residence. The value of the home will diminish. Your next move is beginning a renovation project that includes mold removal, which should regain some of the home’s market value. Expect the cost to move into the six-figure range. Flood insurance reduces the need for expensive renovation projects.
The National Flood Insurance Program
The Federal Emergency Management Agency (FEMA) created the National Flood Insurance Program (NFIP) to help subsidize recovery costs for homeowners with property damage following a flood. The federal government designed this program for areas susceptible to heavy flooding each year. Those homeowners who participate are guaranteed access to federal relief programs after their region has been declared a national disaster area.
Flood Insurance Required in Federal-Funded Home Mortgage Loans
All federally funded home mortgage loans require flood insurance to be a part of the final paperwork. Often, the coverage is verified before the loan is approved. All borrowers must have flood insurance coverage until the home mortgage loan is paid. The coverage will offset the cost of the damage that occurred following a heavy rainstorm that caused flooding. The federal requirement reduces more financial risk following purchasing a home.
If you need more information on flood insurance, contact BES & Associates Insurance of Walford, MD. Our staff have the knowledge and experience to create a policy that protects your home from disaster. The coverage will reflect your insurance needs. Call and schedule an appointment today!
