Accidents happen when we need them the least and we least expect them, and one of them is flooding.
Therefore, many are contracting flood insurance because it is, one can say, one of the ways to protect your property against floods.
All these unexpected situations are very often a large financial expense that is usually not counted.
Flooding can do a lot of damage, which remediation costs a lot.
For example, it can break the tube in the apartment and cause a flood, and those situations can never predict when it will happen. That is why many decide to provide their apartment, house or apartment to make sure and avoid large financial costs.
But still, there is not a high rate of people who actually have a flood insurance. Why so?
In the last few decades, the number of damage caused by natural disasters on average has increased by 6% annually, and it is forecasted that this will be the case in the coming period.
During last years, more damage was caused to agricultural goods than to residential buildings, but it turned out that the previous floods were the biggest in the last 120 years – and that does not mean that the next 120 will be peaceful… Analytics have shown that floods annually cause Americans a loss of $8.2 billion dollars.
Flood insurance, insurance for torrential and high water is so-called additional risk – it is contracted with basic fire insurance and paid annually.
The amount of the premium is not determined by the square, but according to the insured sum – the maximum amount that can be paid in case of damage. This amount (insured sum) is determined on the basis of the value of the object.
For example, if a maximum sum insured in the amount of one million dollars for firearms (basic risk) and floods and high water (additional risk) then for a single or one-store house, the price of the policy would be different, and it’s different for the entire year.
The amount would have been higher if the sum insured would have been higher. Those are some of the reasons people do not even think about getting this type of insurance. But, should you actually have one?
Why you should have a flood insurance policy
Natural disasters are unpredictable and it is important for businesses to consider any possible threat, regardless of whether they are a direct threat or not.
Many articles and studies have shown that even if you live outside a designated flood zone it is actually not important because your property is still not 100% safe.
And to be exact FEMA (National Flood Insurance Program) claimed that even if you have 1% percent of being damaged by floods, you should consider getting a flood insurance policy. But, besides that, why is insurance important?
In the case of large-scale disasters, such as the floods of 2017, the state has no means to pay to citizens all the assistance in the value of the property destroyed in the floods. Since no one is considered responsible for the damage incurred, the state is not obliged to compensate.
The aid that was paid was only proportionate to the state’s participation in an effort to compensate for the actual damage.
The conclusion of the insurance contract provides for faster economic recovery after the occurrence of harmful consequences of natural disasters.
Therefore, the best way to recover from such large-scale disasters such as floods is to secure real estate.
In order to secure the property, it is necessary to conclude an insurance contract with an insurance company.
Property insurance provides compensation for the damage that would have occurred on the property of the insured due to the occurrence of the insured event, where the amount of compensation cannot be higher than the damage suffered by the insured.
In addition to real estate insurance, it is possible to arrange insurance of crops, fruits and other products of land, furniture, machines, tools, various equipment, as well as supplies.
Policies of insurance companies vary. Each insurance company has its own general business conditions that closely regulate the details of the insurance and must be presented at the time of signing the contract.
Check with your insurance company what you can provide. Also, you should check which insurance houses offer a flood insurance package. Some property insurances offer a whole package of insurance policy which includes flood situations.
But mostly, you can pay for your flood insurance policy alone.
If you already have insurance, regularly revise your existing policy. Inadequate insurance can lead to large financial losses if your business has suffered damage, has been destroyed, or the work has been interrupted for a certain period.
Insurance is no longer a luxury but it is a responsibility. Instead of paying unnecessary and high expenses for the repair of damages, it is better to secure your own business.
By negotiating insurance, you considerably increase your own material security in case of frequent disasters, because adequate insurance helps reduce the consequences of harmful events.
Negative sides of having a flood insurance
None. Yes, you read it well.
There is not even one negative side in having your property (also finances) insured in case of unexpected events.
Of course, during these situations you will think only about saving your own life (for which you have your life insurance policy), but why not secure even your property?