Flood Damage Insurance: When Homeowners Insurance Isn't Enough

Flood damage insurance is necessary of those individuals who live in a designated flood zone and need to have special risk insurance in order to recover from damages brought on by flooding. Homeowners insurance provides protection for a homeowner against damages or loss that occurs due to theft or natural causes other than floods.

Flood Insurance Protection

Most every lender requires a homeowner who purchases a home in a designated flood zone to purchase flood damage insurance. This extra level of protection helps protect the home and give the lender assurance that they will receive compensation for their loss. The cost of a flood damage insurance plan should be considered relative to the costs associated with rebuilding a home or replacing damaged items that were destroyed in a flood.

Private insurance companies through the Federal Emergency Management Agency or FEMA provide flood insurance. The amount that you will be required to purchase will be in keeping with the potential for loss and the amount that you will need to recover from a flood.

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