Everyone has an idea of what their perfect home looks like. Once found, you’ll need to protect it as closing draws near. Depending on the area you're moving into, buying flood insurance to supplement your homeowners policy will provide you with peace of mind, knowing that your home always remains protected. 

What Qualifies as a Flood? 

Flood and homeowners insurance work in tandem—when one doesn't cover an event, the other likely will. Since there are many ways that a home can be breached by water, the National Flood Insurance Program (NFIP) has defined what qualifies as an acceptable flood insurance claim. 

An excessive amount of water on otherwise dry land that affects two or more acres or properties would be considered a “true flood.” Mudflow and erosion can also count when resulting from hurricanes or heavy rainfall. 

For those living near a beach, overflowing tidal or inland waters are also sources of true floods. 

While a burst water pipe may flood the home, it isn't a true flood by industry standards. Instead, the homeowners insurance will likely cover the damage.

What Does Flood Insurance Cover? 

There are two types of flood insurance. The first is building property coverage, which protects the physical structure of the home, including the foundation. If the primary residence experiences a flood, the insurance pays out on a replacement cost basis, covering the repairs or replacements. The insurance accounts for the cost of repairs/replacements in today's market and not when the policy first became active.

If the residence is a vacation home, insurance pays the actual cash value, covering a percentage of the cost of repairing or replacing damaged items listed in the policy. 

The second is personal contents coverage, which also pays actual cash value. Items like clothing, electrical and HVAC systems, bookcases, plumbing, some appliances, cabinets, and paneling are covered under this policy. It will also cover a detached garage, but other independent structures, like a shed or a gazebo, would need a separate policy. In some cases, riders can provide further coverage for valuable items, like musical instruments, jewelry, and artwork. 

When Is Flood Insurance Mandatory? 

Homeowners in high-risk flood areas are legally obligated to purchase the insurance. However, mortgage lenders may still require flood insurance even if the property is in a low- or medium-risk area. Insurance agents know what areas are in what risk category and will supply a policy that matches your home's value. 

The homes throughout Foley, AL, are picturesque and share a classic design that is distinctly American. They deserve to be protected with flood insurance in case the unexpected occurs. For 30 years, the agents at Absolute Insurance Agency have provided flexible policy features from some of the top carriers in the country. They'll work with you to find the specific plan you need at a price you can afford. For more information on their coverage areas, visit their website. To schedule an appointment, call them at (251) 942-6837.