People tend to associate floods with a total loss, but the average flood claim for U.S. homeowners is about $39,000, according to the flood insurance program.
Here are six other persistent myths about flood insurance — and the truths you need to know.
1. To get a policy, you must live in a flood plain
Not true. If you live in a flood plain, your mortgage company will likely require you to buy flood insurance. But you can purchase it even if you don’t live within a flood zone.
“Almost anybody can get flood insurance who wants flood insurance,” says Chris Hackett, director of personal lines for the Property Casualty Insurers Association of America.
The price through the federal flood insurance program is based on standardized rates and depends on the home’s value and whether or not it’s in a flood plain, says Don Griffin, vice president of personal lines for the Property Casualty Insurers Association of America.
2. Flood insurance is just for high-risk areas
Merle Scheiber’s dream home wasn’t in a flood plain, and he didn’t have flood insurance.
Just after completing a three-year renovation project for his 1,800-square-foot cabin-style home, flooding put it underwater for almost four months.
Scheiber, who happened to be South Dakota’s director of insurance at the time, says he had to tear the home apart and put it back together all over again.
He urges that all homeowners — even those who do not live in designated flood plains — weigh the dangers and their options and seriously consider buying flood insurance.
By DANA DRATCH
See full story at www.bankrate.com