WEDNESDAY, OCTOBER 8, 2014
 Many homeowners think that if they have home insurance, they're covered against any and all damages. However, it's important to understand what flood insurance can do for you — as well as its limitations — in order to determine if it's worthwhile to add this coverage to your personal insurance portfolio. Below we discuss three common misconceptions about flood insurance.
- Floods are covered by homeowners insurance: While home insurance often covers flooding from internal sources (such as cracked pipes), it does not cover flooding from external sources (such as heavy rain or tidal waters). Speak with your independent insurance agent about the specifics of your policy to avoid learning that you're not covered after disaster strikes.
- Flood insurance is only necessary if you live near water: While areas near the coast may be more susceptible to flooding, floods can happen anywhere and at any time. Flooding occurs when too much water enters an area, and the ground cannot absorb the water fast enough. Heavy rains, overflowing storm drains, oversaturated ground and other environmental circumstances can all lead to flooding. All of this shows that flood insurance can provide value no matter where you live.
- Flood insurance is too expensive: Flood insurance premiums are based on your area's risk; a high-risk area will have higher premiums. However, premiums can be as low as a few hundred dollars per year for homes in low-risk areas — a price tag that provides valuable coverage, considering that floods can cause hundreds of thousands of dollars in damages. If you live in a high-risk area, your mortgage lender may require you to purchase flood insurance. In this case, you must obtain an elevation certificate that signifies the highest point of the first livable floor. Keeping finished living areas above that point may help reduce premiums.
Need coverage? Call Raymond Longoria Insurance at (956) 581-1034 for more information on Laredo flood insurance.
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