Why Flood Insurance is Essential for Your Home

Flood Insurance even in Low-Risk Colorado Areas

You may be in the position of a homeowner and may be thinking: I do not live close to water, why should I get flood insurance? It is time to give a second thought to that assumption. Although the home does not fall within the floodplain or along a river or lake, flood insurance may still be an essential component of the home protection. Particularly, Colorado homeowners should know that floods do occur not only in places near big bodies of water. The floods may occur in any place, and they may occur quickly.

Actually, the most common natural disaster of the U.S. is the flood. That involves Colorado where flooding may occur because of heavy rains and melting snow as well as because of flooded drainage systems. In the absence of flood insurance, the damage caused by floods is not covered by the homeowner policy of your homeowner and the repair expenses are staggering. That is why even your house may require flood insurance.

Flood Insurance: What is It?

Flood insurance is a special type of insurance that is used to cover the damage of your home due to floods. Flood insurance policy is different, unlike ordinary homeowner insurance which in most cases does not cover flooding, a specific flood insurance policy can take care of you in terms of incurring expensive repairs, and substitution of personal property.

The National Flood Insurance Program (NFIP) or individual insurers have flood insurance. It covers two main areas:

Building Coverage- This is the coverage of the damage to the structure of your home, the foundation, plumbing, electrical system, and appliances such as your water heaters and refrigerators.

Personal Property Coverage- This is coverage of your person belongings like clothing, furniture, electronics among other things in your home.

What’s covered (and what’s not)?

Why Do you need Flood Insurance in Colorado?

Colorado does not border a large river, but there is a possibility of floods. National Flood Insurance Program (NFIP) argues that close to 25 percent of flood claims are not of homes located in high-risk areas. Flash floods or heavy snowmelt can occur even in houses in low risk zones and overload drainage systems.

Flood risks in Colorado may be as a result of various sources:

Snow can be melted very quickly in the spring, particularly in mountains.

Heavy rains that lead to flash flooding in streams and consequently cause immense destruction.

Aggressive rivers or creeks particularly in urban locations that lack drainage.

Overcapacity of the drainage systems in the cities that are unable to cope with sudden heavy rain.

Flooding could also happen in the homes even those that are not near lakes and rivers especially in cities such as Denver or Colorado Springs where poor stormwater management may have been a factor in the floods.

What are the Flood Damages that are covered?

Flood insurance would cover most types of damages such as:

Physical destruction of walls, floors and foundation of your home.

Things such as heating and air conditioning, water heaters, and refrigerators are damaged.

Personal property that has been flooded like furniture, electronics, and clothing.

Removal of debris in the post-flood recovery.

Nonetheless, flood insurance is not comprehensive:

Only a part of basement flooding is covered. As an example, when water finds its way through cracks in the foundation, it is usually not insured in most cases unless you have taken some measures in averting the risk.

Destruction of external facilities such as patios, fences, or landscaping does not expand.

Do I Need Flood Insurance on my Home?

Flood insurance is not water-related and you do not have to live close to the water to be in need of it. Actually, flood damages may be as well witnessed within the vicinities of locales which are considered as low-risks hence the importance of all home owners undertaking such activities to check on the possibility of such damages. The houses located in the basin of the Colorado River are the most obvious to take flood insurance out, but even houses located a long distance away are to be put into danger.

The following is the way to tell whether your house may require flood insurance:

Check FEMA Flood Map- FEMA offers flood control maps that will indicate in your neighborhood if you are at risk. When your home is located on a high-risk flood plain, then you must be covered, particularly when you have a mortgage loan with a federally insured lender.

Take into account the Seasonal Risks – in Colorado, snowmelt and heavy rains can occur during the spring months and cause the flood in the regions which do not correspond to floods.

Determine Your Home Elevation- Another factor to consider when it comes to flood risks is the elevation of your house and the land around it. Lower elevation or valleys increase the risk of the homes.

Ask Your Insurance Agent – A local insurance agent may be able to explain to you better specifically about your risk of floods depending on you location and the way your home has been constructed.

Flood Insurance: How to Insure Your Home.

Flood insurance is simply obtained. The policy can be bought either at the National Flood Insurance Program (NFIP) or a private insurance company. The policy will be costly depending on the risk of the home in flood, the kind of cover required and the location.

This is the way in which flood insurance will safeguard your investment:

Peace of Mind: Having coverage in place in case of a flood, you get to feel safe in your home, regardless of whether you are in a high-risk area or a low-risk area.

Guarantee against Financial Loss: Flood damage is costly particularly in terms of structural damage repairs as well as replacement of personal goods. Flood insurance will be useful in averting financial calamity in the case of floods.

Simple to Add: Flood insurance is sometimes cheaper and simpler to add when you take out your mortgage, or when you are renovating your property. It is a cost that can be difficult to add afterwards particularly following extreme weather events.

Home Renovation and Flood Insurance.

In case you are thinking about renovating your home, particularly in the basement or lower level of the house, you should check the levels of radon and also consider whether your house has any chances of floods. When you are planning on installing a new basement or lower-level dwelling, you should have flood insurance covered in the process of renovation and not after the renovation is complete and the cost can be bigger.

Flooding may be especially disastrous in the basement, and it is never a bad idea to check in on the risk of floods prior to engaging in any major activity. When renovating, you can save on installing a flood-reduction system which can save you in the long-run and eliminate the possibility of having to do major fixes in future.

In Colorado, Do You Have Flood Insurance?

Flood insurance is required in any place where the mortgage is federally insured and the area is classified as high-risk flood zone. Still, in case your house is located in a low-risk zone, it is advisable to have flood insurance. We have noted that a quarter of flood claims are in non-hazardous regions.

In Conclusion:

Flood insurance is not something that usually comes to mind after you have purchased homeowner insurance and it should be. The weather in Colorado is rather special, and the likelihood of snowmelt, heavy rain, and stormwater runoff may lead to severe consequences of your home damage, which can be ameliorated by the flood insurance. In a high-risk zone or not, it will be worth it to invest in securing your home and your finances against the sudden floods.

To find out more about flood insurance or simply to ask us about radon testing or home renovations, contact us.