Your home is your castle. You’ve worked hard to get it just how you want it. It is, perhaps, the most tangible and visible manifestation of your achieving The American Dream. You know enough to have it insured properly. But do you know what your policy actually covers? More importantly, do you know what it doesn’t cover?
One exposure that your standard homeowners insurance policy will not cover is flooding—the #1 natural disaster in the United States. And don’t think that just because your home is not in coastal area that you’re off the hook. The National Flood Insurance Program (NFIP) says that people outside of what they call “mapped high-risk flood areas” file more than 20% of all NFIP flood insurance claims and receive one-third of Federal disaster assistance for flooding.
Fortunately, personal flood insurance is available for California homeowners, condo owners and renters. Of course, the cost will vary depending on how much insurance is purchased, what it covers and the property’s flood risk. The good news is, most homeowners in moderate- to low-risk areas could be eligible for coverage at a preferred rate.