Although they don’t realize it, many homeowners have left themselves vulnerable to thousands of dollars of property damage without making an effort to mitigate their risk. Floods, which can happen anywhere and to anyone, cost the state of Minnesota nearly $130 million in disaster costs in 1993 and an additional $400 million in 1997. If you live in a floodplain, add flood coverage to your homeowners insurance policy. Below are some key reasons why.

Why Add Flood Insurance to Your Policy

1. Current Coverage Likely Excludes Flood Damage

Nearly all insurance companies exclude flood damage from their basic homeowners insurance policy. They may cover water damage caused by rain that gets in the house through a broken window or compromised roof, but they don’t cover damage caused by water moving along the ground. Therefore, unless you have flood insurance, you are not protected against a broken levee or an overflowing river.

2. Some Lenders Require It

If you financed your home's purchase through a bank or mortgage company, your lender has a financial stake in the well-being of your house. Many require borrowers to add flood coverage to their homeowners insurance policy, especially those who live in high-risk areas. If you fail to do this, the bank may purchase coverage on your behalf and bill you for it. They may also call in the loan as due for your failure to abide by the terms of the contract.

3. Avoid Financial Disaster

According to the U.S. Federal Emergency Management Agency (FEMA), nearly 20% of flood insurance claims come from areas of low to moderate risk. Low risk does not equal zero risk, and even an inch of flooding can cause many thousands of dollars in damage to carpeting, drywall, furniture, electronics, electrical systems, and even the support structure of your house. To avoid the financial disaster that accompanies many serious weather events, add flood coverage to your homeowners policy today.

To add flood coverage to your homeowners insurance policy, contact Daniel Oliver Insurance Agency in Minneapolis, MN. Daniel has more than 30 years of experience as a Farmers agent and serves communities throughout Hennepin County, including Edina, Bloomington, and Eden Prairie. The team specializes in home, life, business, and auto insurance, helping you protect what matters most. Visit their website for directions and office hours or call (952) 925-4454 to request a quote.