Flood insurance is required by mortgage lenders for properties located within a flood zone. However, any MA homeowner may elect to purchase flood insurance as an added precaution. In the last 10 years, there have been some major and unusual storms that have resulted in flooding in areas outside of flood zones. Given the extensive damage that can be caused by flooding, more MA homeowners are finding themselves considering flood insurance. Below is a MA flood insurance overview with some helpful information for all homeowners in MA.
What Flood Insurance Covers
Flood insurance policies typically cover a building as well as its contents. Contents refer to fixtures, cabinetry, and other essential aspects of the building. Personal property is not automatically included but can be added for an additional cost.
Cost of Flood Insurance
Flood insurance premiums depend on a few different factors. First, insurance companies will evaluate the risk of flood. High risk areas will obviously result in a higher premium. Also factors are the amount of insurance purchased and what specifically is covered. Normally, these figures are estimated based on the replacement value of a property and other items added to the coverage.
Flood Insurance Deductibles
All flood insurance policies have deductibles. Typically, there is a separate deductible for the building itself and for its contents. Similar to car insurance, the higher your deductible, the lower your premium.
Other Helpful Information About MA Flood Insurance
Most of the time, people do not think about flood insurance until they hear about a severe impeding storm. Unfortunately, this will be too late to purchase a MA flood insurance policy since there is a 30-day waiting period before policies go into effect. It is best to purchase a flood insurance policy before there is an immediate danger. Average flood insurance claims exceed $30,000, so if you are concerned about potential flood damage to your home, it is well worth it to purchase a policy now. It will offer you peace of mind and critical assistance in case of flooding.