3 Reasons You Should Think About Buying Flood Insurance ASAP

Dealing with flood damage is enough of a headache without worrying about how you'll pay for it.

Everyone knows the saying "April showers bring May flowers." It conveniently leaves out the part about how heavy April showers and melting snow can also cause flooding, especially in low-lying areas. Flooding can occur in every state and every time of year, and if your home is in the path of one, you could be in for some serious headaches -- and a massive bill.

Purchasing flood insurance now can help reduce a homeowner's financial burden, should a flood occur. Here are three reasons to consider getting a flood insurance policy.

1. Nowhere is safe from flooding

Floods are one of the few types of natural disasters that can happen anywhere. Living on the coast or in a low-lying area can increase the risk of flooding, but they can still happen elsewhere, even in areas that might seem "safe."

In general, the Midwest and parts of the Northeast and Northwest can experience flooding during spring when the snow melts. Coastal areas can be at high risk of flooding during the hurricane season, which typically runs from June to November. And heavy summer rains can cause flooding or flash flooding anywhere at any time.

2. A typical homeowners insurance policy doesn't cover flooding

Many people don't realize it, but flood damage isn't covered by a standard homeowners insurance policy. If that's all the coverage a homeowner has, they'll be on the hook for any home repairs and the cost to repair or replace damaged personal items after a flood. This can easily run into the tens of thousands of dollars.

The average flood claim payout in 2019 was $52,000, according to the Federal Emergency Management Association (FEMA). And some people pay much more than that. These high costs are part of what deters home insurers from covering flood damages in the first place.

3. You're buying a home in an area at high risk of flooding

Flood insurance is helpful but not required in many parts of the country. However, if you're moving to an area that's experienced costly flooding in the past, your mortgage lender may require you to purchase flood insurance.

This is necessary to protect the lender's investment. If a homeowner doesn't have flood insurance and their home is severely damaged or destroyed in a flood, the lender would have no way of recouping the loss.

How to purchase flood insurance

Homeowners can buy a flood insurance policy through the National Flood Insurance Program (NFIP). These policies generally cover the home, including its foundation, electrical and plumbing systems, appliances, and flooring as well as personal property. A typical policy provides up to $250,000 in coverage for the home itself and up to $100,000 in coverage for personal property.

But it's important to note that these policies only cover flooding due to natural disasters. Problems like sewer backups aren't covered under a flood insurance policy. For that, one would need a homeowners insurance policy with a sewer backup endorsement.

The NFIP partners with several popular home insurers, and you can find a list of providers on the NFIP's website. Though you may purchase your policy through one of these private companies, you'll deal with the NFIP directly if you need to file a claim.

Premium costs vary depending on a home's location, age, and construction, among other factors. In 2019, the average policy cost about $700 per year, according to FEMA. But some people pay less than this.

You never know when a flood could strike, so it's best to prepare yourself right away. Check to see whether you already have a flood insurance policy if you're unsure and consider adding one if you don't.