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How to Decide if You Need Flood Insurance

Flood insurance is not optional if you live in a high-risk flood area, as most lenders require it. But what if you don’t live in a high-risk area? Is flood insurance worth the investment? The answer depends on several factors, including your home’s location, personal risk tolerance, and budget. Anthony Lancaster Insurance Inc. in Memphis, TN provides this guide in navigating this important coverage.

Factors to consider when deciding if you need flood insurance:

1. Consider Your Home’s Location

FEMA, which is responsible for floodplain management in the United States, designates high-risk, moderate-to-low risk, and undetermined risk areas. If you live in a high-risk area, your lender will require you to have flood insurance. If you live in a moderate-to-low-risk area, it is still recommended that you have flood insurance, as flooding can occur even outside of designated flood zones. If you live in an undetermined risk area, your decision to purchase flood insurance is entirely up to you.

2. Know Your Risk Tolerance

A key factor to consider when deciding if you need flood insurance is your personal risk tolerance. Ask yourself how you would feel if your home was flooded and you didn’t have insurance to cover the damages. If the thought of being financially responsible for repairing or replacing your home and belongings is too much to bear, then flood insurance may be a good idea.

3. Understand Your Homeowners Policy

Even if you don’t live in a high-risk area, your home may still be vulnerable to flooding. Homeowners’ insurance policies typically don’t cover flood damage, so it’s important to understand your policy’s limitations. If you have questions about what your policy covers, reach out to your insurance agent or company. This way, you’ll know if you need to purchase additional coverage.

Contact Us Today

If you’re unsure whether or not you need flood insurance, reach out to Anthony Lancaster Insurance Inc. in Memphis, TN for help. Our team of experts can help you understand your risk and make the best decision for your needs. Give us a call today to get started.

Why would I need flood insurance in Tennessee?

Those that are in the Memphis, TN area are going to find it is a good place to purchase a home. There are a lot of advantages that come with homeownership here, which includes enjoying price appreciation over the years and having a stable place to call home. As you are looking for a property here, you need to get the right insurance for it. This can include flood insurance. There are a few reasons that you will need to have flood coverage here. 

Coverage is a Requirement for Some

A reason that you may need to get flood insurance here is that it can be a requirement for you. Those that have taken out a mortgage to buy a home in this area of Tennessee will need to abide by any provisions set by their lender. This can include requiring you to get flood insurance if your home is located in a flood zone. Having this coverage will keep you in compliance.

Coverage Protects Home

You will also want to have flood insurance as it can cover your home. You will want to enjoy your property for a long time. Unfortunately, a bad flood can damage your home and result in major repair needs. Your flood insurance plan will protect against this risk.

If you are going to purchase a home in the Memphis, TN area, you will want to know that you have the right insurance for it. The team with Anthony Lancaster Insurance Inc can help you assess your flood insurance needs. The professionals with Anthony Lancaster Insurance Inc will be able to determine your risks and give any support that is needed to build an ideal plan. This will not only protect your home but will give peace of mind as well. 

Flood Insurance Explained

While home insurance for your Memphis, TN home covers you against perils like theft, vandalism, fire, and numerous natural calamities, it won’t cover you when floods strike. The only way you can protect your home from floods is by purchasing flood insurance from Anthony Lancaster Insurance Inc. 

If you are new to flood insurance, keep reading as we elaborate on all you need to know about this coverage.

Can anyone buy flood insurance?

There are no restrictions as to who can buy flood insurance. In fact, since all homes are at risk of flood damage, every homeowner should consider flood insurance. You don’t believe all homes are at risk of flood damage? According to FEMA, residents living in areas not regarded as flood-risk account for about 20 percent of all flood insurance claims! Of course, this rate could even be higher if more people have flood insurance. 

What does flood insurance cover?

Typically, flood insurance covers the dwelling and contents of your building. The building coverage protects your electrical and plumbing system, air conditioning, water heaters, foundation, permanently fixed carpets, and fixed wall cabinets. 

The contents coverage protects personal assets like clothing, furniture, electronics, curtains, jewelry (limited coverage), and other personal assets.

What is the flood insurance coverage amount?

If you buy flood insurance through the National Flood Insurance Program (NFIP), you get a dwelling coverage of up to $250,000 and contents coverage with a limit of $100,000. However, you can increase your limits by purchasing flood insurance from private carriers. 

Typically. NFIP flood insurance coverage requires 30 days to take effect. However, you can reduce the waiting period if you purchase your flood insurance through private insurance companies. 

Buy flood insurance in Memphis, TN today!

While the federal government might declare floods in your area a natural disaster (and provide grants), this isn’t always the case. But even when they do, the federal assistance is a loan that you are required to pay back! For this reason, you need flood insurance from Anthony Lancaster Insurance Inc. to protect your home and for peace of mind.

Can anyone buy flood insurance?

Flooding is one of the most common and serious natural disasters that face Americans. In recent years, places have seen flooding for the very first time. Nowhere is safe from the ravages of flooding. If you are a homeowner, renter, or business owner, you may wonder if you can buy flood insurance?  Stated, almost everyone can benefit from flood insurance. At Anthony Lancaster Insurance Inc. in Memphis, TN, we are independent agents who offer personalized service to meet our customer’s needs. 

Flood insurance is a national program managed by FEMA (Federal Emergency Management Agency) and delivered directly through the NFIP (National Flood Insurance Program) or one of the 60 or so approved carriers. This is a great program that allows you to purchase protection from floods. It is sold in two parts, building and contents. You can purchase one piece or both, and it is up to you. 

Building coverage covers the physical home. Things like the roof, the foundation, the main systems such as electrical, plumbing, heating, and cooling. It also covers anything permanent in the home, like flooring, cabinets, built-in appliances, bathroom fixtures, and built-in furniture. Flood insurance does have limits and exclusions. The most flood building insurance that you can buy is $250,000. 

Contents flood insurance covers moveable things. It covers your furniture and your clothing. It covers your washer and dryer and small appliances in your kitchen. It will pay for your children’s toys and yours as well, depending on what they are. Your electronics are also covered. The most content coverage that you can buy is $100,000. 

If you are not eligible for NFIP insurance, it doesn’t mean that you can’t have flood insurance. Other options are available. 

Contact Anthony Lancaster Insurance Inc. in Memphis, TN for all your insurance needs. 

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