Virtually, all of us are in a flood zone. Even if you are not located near a lake or river, you still face flood risks. Of course there are the obvious threats of flood—hurricanes, heavy rainstorms and melting snow—but you can also experience flooding from other not-so-obvious causes:
- damaged water mains
- broken levees and dams
- ruptured tanks and towers
Most property policies do not cover flood damage.
Contrary to what many people believe, very few property policies insure flood damage. In fact, most of them only cover damage that is caused by overflow or accidental discharge of water from within a structure.
In the event of flooding, federal disaster assistance, if available, comes in the form of a loan that must be repaid with interest.
On top of that, if you are uninsured and receive federal disaster assistance, you may need to purchase flood insurance to remain eligible for future relief. Compare these key differences between disaster relief and flood insurance, then decide (with the help of your agent) which is the better alternative for you.