Who needs flood insurance?

If you don't have the proper insurance, your flooded home can lead to financial ruin. Always keep in mind that a basic homeowners insurance policy doesn't provide flood insurance coverage. Practically everyone needs flood insurance - especially if you live in an area that is especially vulnerable to floods.

Approximately 200 insurance companies will provide you with additional flood insurance coverage. As a matter of fact, the company that you are currently with is likely to provide flood coverage, as well. However, don't forget that your premiums will increase for the additional coverage that you are going to receive.

On the contrary, flood insurance provides excellent coverage. Many Americans neglect to purchase flood insurance when they think of higher premiums, when they do not realize that in case a flood does occur, the additional coverage will pay off.

According to the Federal Insurance Administration (FIA), one-quarter of the homes in areas most vulnerable are insured against flood loss. In vulnerable areas flood is 26 times more likely to occur than a fire during the course of a typical 30-year mortgage.

According to the Federal Emergency Management Agency (FEMA), stricter zoning and building measures are now approved by more than 19,000 communities to control floods.

In 2000, the average annual premium for flood insurance was $353 a year with policies ranging from $112 per year. Keep in mind that the sooner you purchase the flood coverage, the better.

The policy isn't going to take affect until 30 days after you purchase flood insurance. If the weather forecast announces a flood, and you run to purchase the flood coverage, know that it's too late. Even if you purchase your coverage a few days before the flood, you should've purchased coverage sooner.

Picking a company to purchase your flood insurance from shouldn't be too difficult. You should shop around, because if you aren't satisfied with the price your company offers you, search for another company.

You should also keep in mind that if you live on the shoreline, it's going to cost you. If you live in between the mainland and in often have stormy weather, flood insurance will be cost you more money compared to a house that isn't located in an area vulnerable to floods.

Flood insurance is often affordable and easy to find, so don't worry about paying too much for your premiums. The coverage that homeowners most likely need is flood and lightning insurance. Contact your insurance agent and discuss all of the terms and conditions of the type of flood insurance that you are going to purchase.