Flood waters have the power to damage not only your home and sense of security, but also your financial future. How can you protect the biggest investment of your life in case of a flood?

You have two options. The first one is to hope that you will receive federal disaster relief if a flood damages your property. Many people are under the misconception that the government will take care of their financial needs should they suffer flood damages. The truth is that federal disaster assistance only becomes available once the president formally declares a disaster. Even if you receive disaster assistance, it often comes in the form of a loan you will have to repay with interest. Of course, these payments are in addition to your regular mortgage payments.

That being said, you must consider the possibility that if your home becomes flooded and you are not offered disaster assistance, you should consider the massive damage costs alone. The bottom line is that if you’re looking for secure protection from financial loss due to flood damage, federal disaster assistance is not the answer.

Your other option is to buy flood insurance and stay protected, no matter what. When disaster strikes, flood insurance policyholder claims are paid, even if a disaster is not federally declared. Flood insurance means that you’ll be reimbursed for all of your covered losses. And unlike federal aid, it never has to be repaid. Typically, a policy does not take effect until 30 days after you purchase flood insurance. So, if the weather forecast announces a flood alert for your area, it’s already too late to purchase coverage. You will not be insured if you buy a policy a few days prior to a flood, so stay ahead of a bad situation and contact us today!