What to Look for When Buying Flood Insurance

Did you know that your homeowners’ insurance policy does not cover flooding? Most people decide that as long as they aren’t in a high-risk area, they won’t need to invest in a flood insurance policy.

That’s where they’re wrong. In fact, 1 out of every 4 flood insurance claim comes from people that are located outside a high-risk area. To put it another way, 25 percent of all flood insurance claims are from outside a high-risk area. Those statistics show how important it is to have a flood insurance policy.

See below for an in-depth guide informing you on New Jersey flood insurance, what it is, why you need it, and so much more.

What is Flood Insurance?

Everyone understands the basic premise of flood insurance. As the name would imply, it grants you financial coverage in the event of a flood due to weather, pipe leaks, etc. Side note: flood insurance does not protect against damage that was caused by a sewer backup, as it is not the technical term of a flood.

That said, most people don’t take the time to understand what flood insurance actually covers. Depending on the severity of the flood, your flood insurance provider might be your only protection from a financial loss. It’s important to invest in a strong flood insurance policy.

Flood insurance can help protect a significant portion of your belongings and aspects of your house, such as your:

  • Electrical systems
  • Detached garages or sheds
  • Furnaces
  • Plumbing systems
  • Fuel tanks
  • Kitchen appliances (such as refrigerators, dishwashers, stoves, etc.)
  • Windows and doors
  • Cabinets, bookcases, and other permanent features
  • Flooring & more

Upon calling us to inquire, we’ll take the time to listen to your goals, take note of your belongings, assess the risk associated with where you live, and more. We pride ourselves on creating a flood insurance policy that fits your every need, such as coverage, meeting your preferred budget, etc.

Questions to Ask Yourself

Whenever someone is considering flood insurance, they find themselves wondering if it’s a need for their situation. In short, the answer is always yes. As the statistics in our intro pointed out, you never know when an emergency could happen.

However, if you still need more reassurance that it’s a worthwhile investment, here are a few questions that you could ask yourself.

The first and most important question is can you afford not to have it? In other words, do you have the money saved up to replace all of your damaged property and belongings from a flood? For most people, the answer is no. Even if you have that amount saved up, why use it when you can have a flood insurance provider cover the cost?

The next question you should ask yourself is has your property flooded before? Even if not, is it in a 100-year floodplain? For those of you unfamiliar with the term, a 100-year floodplain is an area in which there is always a 1 percent chance of a flood occurring any year. Do some research on your home’s location.

Lastly, do you have a basement? If so you unquestionably need flood insurance. It’s the only protection that you have when a flood occurs in your basement, which can lead to problems with your foundation, dry rot in your home, the destruction of your HVAC system, and so much more.

What to Look for When Buying Flood Insurance

Of course, your protection is only as strong as the flood insurance policy that you invest in. See below for the things you need to look for when buying flood insurance.

A Reputable Provider

Don’t just invest in flood insurance with the first provider you see in an advertisement. Find a provider that you can trust!

Look into the provider’s reputation by reading through online reviews and customer testimonials on their website. Let their previous clientele be your guide.

Lastly, call them. Do they seem helpful and enthusiastic? Are they genuinely worried about your needs as a homeowner? Can they create a policy that fits your needs?

Proper Coverage

We listed all the different things that flood insurance should cover for your policy, but every provider is different. Some don’t provide as much coverage as others.

Make sure that you have coverage for all the unique features of your home. That includes appliances, electrical systems, permanently installed features, and more.

Here at Central Jersey Insurance Associates, we take pride in making sure our clients understand the ins and outs of their coverage so that they have more peace of mind.

Balance of Coverage, Premiums, and Deductibles

As with any other insurance policy that you invest in, you want to make sure that a balance is struck between the coverage and the premiums.

In other words, you want as much coverage as possible, but within the confines of your budget. The more coverage you have, the higher your premiums will be.

There is one exception to that though. You can pay a higher deductible to activate the coverage, which will lower your premiums and still help you get your desired coverage amount.

Invest in Flood Insurance for Your Property Today

Now that you have seen an in-depth guide to New Jersey flood insurance and what to look out for, be sure to use this information to your advantage.

If you’re a business owner as well, take the time to read this article to learn more about the benefits of investing in commercial flood insurance.

For any other inquiries that you may have, be sure to reach out to us via our contact us page and we will be happy to assist you further.