As was painfully made evident by the destruction caused by Hurricane Katrina, damage caused by flooding is not a standard part of homeowner insurance plans. Therefore, many of the homes that were destroyed in New Orleans were not covered for flood damage. Any home owner who lives in or near an area that is prone to flooding should purchase flood insurance. Additionally, since flash floods can occur almost anywhere, even those who are not in traditionally flood prone areas can purchase flood insurance as an extra bit of protection against flash floods.Many people are simply not aware of the vast, sweeping scale of the damage that can be caused by floods. Floods are not isolated like tornados or fires, rather, floods can wipe away entire communities in a single deluge. This is the reason that insurance providers to not offer flood insurance as part of the standard policy. Floods are so widely damaging that they could quickly bankrupt the insurer if flood insurance were included as a part of their standard home insurance package.
Flood insurance is required for homes that are in federally designated high flood risk areas. Lenders are required to ensure that home owners purchase and sustain continuous flood insurance coverage. This is in part in response to the enormous financial losses that were caused by flooding of the Mississippi River region several times in the last few decades.
It is vitally important that all homes that are even moderately susceptible to flooding be covered by some form of flood insurance. The damage from flooding can be overwhelming and families who lose their homes and all their possessions to floods can be financially (as well as emotionally) ruined. Fortunately, the government has passed laws requiring flood insurance for high risk areas, but those located in areas less prone to flood damage should also consider purchasing flood insurance.
Floodsmart
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