Many Tennessee homeowners assume their standard homeowners policy covers flood damage. It does not. Here are the five most common misconceptions we hear at Vallie Insurance.
1. “My homeowners policy covers floods”
Standard homeowners insurance specifically excludes flood damage. Whether it is a rising creek after a heavy rain or a flash flood in downtown Greeneville, your home policy will not pay the claim. You need a separate flood insurance policy.
2. “I don’t live in a flood zone, so I don’t need coverage”
Over 25% of all flood claims come from properties outside high-risk flood zones. If it can rain, it can flood. Even a few inches of water in your home can cause tens of thousands of dollars in damage.
3. “Flood insurance is too expensive”
NFIP flood insurance policies often cost less than homeowners expect. Many Greene County properties can be insured for a few hundred dollars a year, especially in moderate-to-low risk zones.
4. “I can buy flood insurance when a storm is coming”
There is a standard 30-day waiting period before a new flood policy takes effect. You cannot buy coverage the day before a storm hits. Planning ahead is essential.
5. “FEMA will cover me if there is a disaster”
FEMA disaster assistance is a loan, not a grant. The average FEMA flood loan must be repaid at interest. Flood insurance pays a claim with no obligation to repay.
The Bottom Line
Flood damage is the most common and costly natural disaster in the United States. As an Erie Insurance partner agency, we can help you find the right flood coverage at competitive rates. Give us a call to get a free quote.