Flooding is something that your typical home insurance policy may not cover. Most home insurance policies only cover water damage to your home if it comes from pipes or water blown into your home. However, flooding from natural disasters requires a flood insurance policy. While obtaining a flood insurance policy may seem very straightforward, there are still a few things that you may not know. Here are three things to keep in mind.

You May Need It Even If You Don't Live In A Flood Zone

If you live in a flood zone or an area that is very prone to flooding, you will likely need a flood insurance policy. If you have a mortgage, your lender will require flood insurance if your home is within a flood zone. However, even if you don't live in an area that floods or is in a flood zone, it's still a good idea to carry some coverage. Flood insurance policies in regions that are not prone to flooding are often very affordable. Even areas that aren't in flood zones can flood and having a policy will protect your home.

There Are Different Types Of Flood Insurance

One thing that you may not know is that there are different types of flood insurance available. You can obtain a flood policy through the National Flood Insurance Program (NFIP), or you can choose a private plan. Rates through the NFIP are standard, so there's not much variation from one insurer to another. However, there are coverage limits and a 30-day waiting period before the policy goes into effect. Private policies have higher coverage limits but may not be available where you live.

It Doesn't Have To Break The Bank

Another thing that you may not know about flood insurance is it doesn't have to break the bank. The average cost of a flood insurance policy is $700 per year. There are a few things that will determine your rates. While your flood risk will have the most significant impact on your rates, the age of your home, the coverage you choose, and the construction of your home will also have impacts. If you want to save on your policy, making a few changes to your home, like elevating your utilities and installing flood openings, can lead to discounts. 

While you may know a little bit about flood insurance, there are few things to keep in mind. First, even if you don't live in a floodplain, you may want a policy. Next, you have the option between national and private flood insurance plans. Finally, what insurance doesn't have to break the bank, there are ways to get discounts and reduce your cost. Reach out to a professional to ask about flood insurance.