Why Should I Purchase Flood Insurance?
Floods can happen anywhere — just one inch of floodwater can cause up to $25,000 in damage. Most homeowners insurance does not cover flood damage. Flood insurance is a separate policy that can cover buildings, the contents in a building, or both, so it is important to protect your most important financial assets — your home, your business, your possessions.
You might think that because you’ve never experienced a flood, you won’t. But, where it snows or rains, it can flood.
Bancorp Insurance, in affiliation with the National Flood Insurance Program (NFIP), provides Oregon residents with the protection they need when flooding occurs.
The NFIP provides flood insurance to property owners, renters and businesses, and having this coverage helps them recover faster when floodwaters recede.
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“I Don’t Live in a Flood Zone!”
Most flooding in our area occurs from excess snow melt which causes our local rivers and lakes to rise quickly and without warning. We’ve seen clients lose their homes and business do to flooding. In fact, flooding is ranked the number one natural disaster in the US. Up to 11,000 households lose their homes to flooding!
YOUR HOMEOWNER’S POLICY WILL NOT PAY FOR FLOOD DAMAGE.
What Does Flood Insurance Cover?
Oregon Flood Insurance covers up to $250,000 in property damage to a home and up to $100,000 for contents, although excess insurance can be purchased through private insurance companies like Bancorp Insurance.
Policies are calculated based on the following factors:
- Age of home
- Number of stories
- Number of occupants
- Flood risk
- Location of contents
- Your chosen deductible and coverage for buildings and contents
Is Flood Insurance Required?
When purchasing a home in a flood hazard zone, your lending institution supplying your mortgage may require you to buy Flood Insurance, minimum to the amount of the loan. People paying cash for their home are not required to obtain coverage but I would strongly recommend it.
If you believe your new home is not in a flood zone, but the lender is insisting it is. You will need to get an elevation certificate supplied by a licensed surveyor. Check with your lender before you hire anyone, the surveyor may need to be approved by your lender first.
Homes not near the water will likely be considered to be not in a flood hazard area. These properties can still purchase Flood Insurance at surprisingly inexpensive rates. In many instances, a preferred policy is available for under $400.
Homes located in special flood hazard zones may be eligible for significant discounts based on the finished elevation of the dwelling and the type of foundation. In short, the higher the elevations of the structure off the ground, the less likely the chance of flood damage and the lower the insurance rate.
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As you can see, our protection team understands the way home insurance works. Let us identify the kind of policy and coverage you need when obtaining premium quotations to find the best values.
There are a lot of myths floating around about flood coverage.
Myth: My homeowners insurance will cover damages caused by flooding.
This is false. Most policies do not offer a flood provision. Only a Flood policy purchased through the NFIP will protect your home and belongings from flood damage. It will also provide coverage for tsunamis.
Myth: I live in an area of low risk, I don’t need Flood Insurance.
Between 20 and 25 percent of all flood claims come from outside areas of high risk.
Myth: Coverage is expensive.
While premiums are calculated according to risk, the average flood policy costs less than $570 a year.
For more information on Oregon Flood Insurance and protecting your home from flooding, contact the agents at Bancorp Insurance today. We’re here to help you.