If you live in America, you know this country is not a stranger to floods. Floods are the most common natural disaster in the US, causing billions of property damage yearly. Since typical home insurance doesn’t cover flood damage, many Cincinnati, OH homeowners have invested in flood insurance to protect their homes against flooding.
Suppose you have flood insurance, congratulations! But do you have sufficient coverage? Underinsuring your home against floods may catch you off-guard when you least expect it. And because at Advantage Insurance Network, we don’t like to see our clients caught by surprise when filing claims, the post below is a guide on the amount of flood insurance you should purchase.
Satisfy your mortgage requirements
If your home is in a flood zone, your lender requires you to purchase flood insurance to protect your home. Your lender probably requires you to purchase flood insurance equivalent to or higher than the outstanding loan or the cost of rebuilding your home.
Remember that your lender’s requirements may differ from what you need. For instance, if the outstanding loan balance is way below the value of your house, you need to reconsider your flood insurance amount.
How much flood insurance do I need?
Assuming you don’t have a mortgage or want optimal protection for your home, here is the guide to help you purchase sufficient flood insurance.
- The amount should be enough to rebuild your home: Purchase flood insurance equivalent to your home’s replacement value. This ensures your flood insurance can rebuild your home from the ground up in the worst-case scenario.
- Your flood insurance should replace all your assets: Set up a home inventory count and value everything in your possession. Buy flood insurance coverage that can replace all your assets if swept by floods.
Still not sure how much flood insurance you need in Cincinnati, OH? No problem. Please get in touch with Advantage Insurance Network for tailor-made advice.