Common Misconceptions About Flood Insurance

Flood insurance is an important coverage that many people don’t think about unless their bank requires it in order to get a mortgage. There are many things which people do not understand about flood insurance. This article and the related video (below) will go over three of these common misconceptions about flood insurance. 

Myth #1 My Homeowners Insurance Will Cover It

The truth is that while most modern homeowners policies will cover some water caused situations like a broken pipe or a backed up sewer inside the home, many policies limit the amount of coverage for those claims and almost no homeowners policies will cover damage by surface waters (flood). A separate flood insurance policy is needed to provide this coverage. 

Myth #2 The Government (FEMA) Will Provide Assistance

While it’s true the government CAN step in and provide assistance in the event of a flood, that may or may not help you out. First, in order for FEMA assistance to kick in, the area must be declared a National Disaster by the President. Small, regional events are rarely elevated to national disaster status. Secondly, much the assistance FEMA provides for rebuilding comes in the form of low interest federally backed loans, which must be paid off (all while you continue to make your mortgage payments.) A flood insurance claim pays you to rebuild your home, and you don’t have to pay it back. 

Myth #3 I Don’t Need Flood Insurance Because I Don’t Live in a Flood Zone

The truth is everyone lives in a classified flood zone. Flood zones are broadly defined as low, moderate or high risk zones. If you live in a high risk zone, your bank or municipality probably requires you to carry flood insurance. Those living in low or moderate zones still have a risk of flood, however. Unusually high seasonal rains or snow melt, a blocked storm drain, damage or failure to a levee or damn are all things that can cause flooding in low to moderate risk areas. The good news is that the premiums for flood insurance in low to moderate risk areas are much lower than for high risk areas. 

Watch the short video below for more information and give us a call at (706) 216-3296 to discuss is a separate flood insurance policy makes sense for you. 


About Dawson Insurance

The first independent insurance agency in Dawson County, Dawson Insurance has a history of excellence since 1964. Located in Dawsonville, Georgia, we also offer unparalleled service and competitive quotes to personal and business insurance clients in Cumming, Gainesville, Alpharetta, and throughout the entire State of Georgia.

(The above article provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions, and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.)