A home is one of the most prized possessions an individual can have, which has understandably allowed for the many home insurance plans available on the market. However, many homeowners have never been exposed to something called “Flood Insurance.” Of all the households in the United States susceptible to floods, less than one in four homes has Flood Insurance. Flood Insurance protects one’s finances in the case of a flood which are known to commonly cause insurmountable amounts of damage.

Even in areas prone to floods, most homeowners do not have a Flood Insurance policy (unless dictated by their mortgage company) due to the incorrect notion that a generic home insurance plan covers natural disasters such as floods (think New Orleans and Hurricane Katrina)—over a third of American homeowners believe that their standard home insurance covers flood damage. The reality is that most home insurance packages do not account for flood damages, and homeowners who do not have Flood Insurance risk paying off all the resulting flood damage out of their own pocket.

Flood Insurance follows two common types: Building Insurance and Contents Insurance.

• Building Insurance covers the damage endured by the building itself. This may include the building’s plumbing network, electrical system, central heating/cooling, structural integrity, and more.
• Contents Insurance covers the flood damage inflicted upon on a homeowner’s belongings. This may include small appliances, furniture, electronics, clothing, and more.

Setting up a Flood Insurance plan is straightforward, and is a beneficial additional to home insurance. Phoenix and Scottsdale residents in particular have a unique case which places them at a higher risk for flood damage.

Although Arizona does not typically receive lots of rainfall throughout the year, whenever rain does occur it arrives heavily and quickly, causing high water levels that have difficulty draining properly. With monsoons and thunderstorms a familiar occurrence in Phoenix and Scottsdale, it is strongly recommended that Arizona residents look into a Flood Insurance plan.

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