Taking a look into the many important reasons why you should look into flood insurance policies if you are at risk of flood damage to your home or vehicle.

Being a homeowner comes with its share of challenges. Depending on where you live, your property could be prone to vandalism, theft, or natural disasters.

Flood damage is by far one of the worst things that can happen to your family — and your home.

Each year, more than 100 Americans lose their lives because of floods. Experts predict that the number of flood-related deaths will increase over the next few years.

Although this natural disaster is becoming more and more common, it's not covered under standard home insurance plans. If you live in a high-risk area, flood insurance policies can make all the difference.

This type of coverage is offered by private insurers as well as through the National Flood Insurance 
Program (NFIP). It's not cheap, but it can save you a fortune in case of flood damage.

But how does flood insurance work? And why is it so important in the first place? Let's find out!

What Does Flood Insurance Cover?
Flooding is one of the most common and destructive natural disasters in Florida and other coastal states. 

In fact, you might not even be able to get a mortgage unless you purchase flood insurance for the property you're interested in. And note that if you're purchasing flood insurance most likely you'll also need a FEMA elevation certificate.

As mentioned earlier, homeowners and renters insurance policies don't cover flooding. Your only option is to buy flood coverage separately.

This type of coverage pays for physical damage to your home up to the cash value of the damage, the policy limits, or the replacement cost — whichever is lowest.

Homeowners who sign up for flood insurance may receive up to $250,000 in case of a disaster, depending on the factors listed above.

The policy typically covers debris removal, cleaning, and any damage to the property's floor surfaces, AC system, water heater, and furnace. Some plans may also pay for damage to your basement and ground-level areas.

Homeowners who purchase flood insurance through the NFIP can get additional coverage for personal belongings, such as their clothes and furniture. This option costs an extra $100,000.

Flood insurance policies don't cover stock certificates, jewelry, cash, and other items that belong in a bank or safe.

Also, you won't get any money for the damage to your patio, swimming pool, walkways, plants, or personal vehicles. Post-flood mold damage isn't covered either.

However, you can purchase other types of coverage for the above items.
Are Flood Insurance Policies a Must-Have?
Depending on your location, this type of coverage may or may not be mandatory. Due to the increasing number of floods, most lenders now require future homeowners to have flood insurance in order to qualify for a mortgage.

And it makes perfect sense.

Flood insurance policies can mean the difference between recovering from a natural disaster and losing everything you have.

This coverage plan costs just a few hundred dollars per year and could save you thousands in home repairs or replacement.

How much you'll pay depends on several factors, including the property's year of construction, location, number of floors, and flood risk. Your deductible matters too. A higher deductible will result in lower rates.

Keep Your Home Safe and Protect Your Finances
The truth is that floods are unpredictable. If you live in a coastal state like Florida, the risk is even greater. 

You've worked hard for the home you live in, so why take unnecessary risks?

Nowadays, flood insurance policies are more affordable and flexible than ever before. Dozens of options exist, and each has its perks. Your only job is to reach out to an insurance agent and choose a plan that fits your budget.

Looking for other ways to keep your home safe or maximize its curb appeal? Perhaps you're planning to redecorate? Browse our Home & Design section for more tips and handy guides!