At Southwest Insurance Center, serving the greater Austin, TX area, we have learned that there are a lot of misconceptions out there surrounding flood insurance. Flood insurance is not typically included in your home insurance policy. It is an add-on policy that you can purchase. But many people do not know when they should buy it or if they should. Here is some information that you should consider if you are on the fence about buying this type of insurance.
Your Flood Risk Zone
If you live in a home zoned as an A or V flood zone, your risk of flooding is high. In many cases, lenders require you to purchase flood insurance if you live in one of these high-risk flood areas. If you live in one of these areas, buying flood insurance is something you should do, even if it isn’t required. If you live in a flood zone B, C, or X, you have a low to moderate risk of flooding. It is up to you to decide if you should purchase flood insurance. If you live in a D zone, the risk has not yet been assessed, typically because it is an area that doesn’t have a lot of residents or is slowly being build up.
The Risk For Low to Moderate Flood Zones
Over 20 percent of all homes that are flooded are zoned as a low to moderate flood zones. This is one out of five houses. As such, you should not disregard buying flood insurance just because you view your risk as being small. If you cannot afford to replace your home without causing yourself financial hardship, you should consider insuring it with flood insurance.
If you are looking to obtain a quote for flood insurance in the Austin, TX area, let Southwest Insurance Center help. Call us today to get started on your free quote.