Around the planet, people invest more than $10 billion in flood insurance every single year. However, this market is expected to grow at an amazing rate of almost 60% every year until 2027. By the end of 2027, the whole market is expected to have almost tripled to a value of more than $29 billion!
Speaking with a flood insurance agent can be a valuable opportunity to learn as much as you can about your potential flood situation. However, if you do not ask the right questions, then you may not learn what you need to in order to make the best decision for your situation.
Taking the time to prepare your questions in advance can make sure that you make the most of your time speaking with your flood insurance agent. So what kind of questions should you ask your agent?
Read on to learn all about the most valuable questions your flood insurance agent can answer!
1. Do You Need Residential Flood Insurance?
Of course, there is a good chance that your flood insurance agent will say that you do need flood insurance. However, it can be valuable to walk through their reasoning as to why you need protection from flood damage. Y
ou might learn a lot about your home, your neighborhood, or even your city. You can learn about what makes flood insurance more valuable for some people than for others. You might even pick up some hints as to why the flood insurance market is growing so fast that the market will triple in the course of a few years.
All of this information can help you make a better decision today about your flood insurance. It may also come in handy if you ever encounter a flood and need to know what to do about it.
2. Does Your Homeowner’s Insurance Already Cover Flooding?
In some cases, homeowner’s insurance will cover flood insurance for people. However, it can be difficult for lay people to understand to what degree their homeowner’s insurance takes care of flooding for them and to what degree they should amplify it with their own flood insurance.
On the other hand, your flood insurance agent will know all of the details of how homeowner’s insurance can cover flooding. If they are not familiar with your own homeowner’s insurance, they can point you toward the information they would need in order to answer your question.
You might also want to ask follow-up questions like how bad flooding would need to be before you would need extra flood insurance to cover the costs of flood damage. Once you know that, you can ask how often floods of that magnitude occur. These details can help you decide if you need to add extra flood insurance coverage or not.
3. Do Renters Need to Track Flood Hazards?
If you are renting your home, do you even need to invest in flood insurance? In many situations, you will not be responsible for any damage done to the structure of the house during a flood. On the other hand, that does not save your own personal possessions from suffering flood damage.
In such cases, it often makes sense for renters to get flood insurance as well to protect their possessions. However, the right kind of flood insurance for you will differ depending on whether or not you need to protect your possessions alone or if you also need to protect your house.
4. Do You Live in the Flood Zone?
Ask your flood insurance agent about the high-risk areas around your city. That can help you get some perspective about how exposed your own home is or isn’t. If you live in one of the riskiest areas, then you may want to invest in extra flood insurance.
On the other hand, if you are only exposed to a small amount of risk, you might need less coverage. However, there is a lot to learn about how much insurance you need based on how exposed your area is to flooding. You can read the full article on BetterFlood.com to learn more about how to respond to your own level of risk.
5. What Kind of Flood Coverage Can You Get?
Some people only consider one kind of flood insurance without realizing that there are two main types. Remember that some flood coverage protects the home while the other kind only protects personal possessions.
Although most people will want both kinds, it often makes sense to emphasize one or the other more depending on your situation. Your flood insurance agent can help you figure out how much of each of the two kinds of coverage you need.
6. Where Can You Find References?
Finding the right flood insurance agent can have a huge impact on the quality of your coverage. Consider asking your agent for references from past clients. You may also be able to find online reviews that help you assess your flood insurance agent options.
7. What Should You Do if There Is a Flood?
Flood insurance agents often know a lot about the correct way to respond to a flood. You may want to have an emergency flood kit and an escape route ready. Instead of figuring these things out on your own, consider asking your flood insurance agent for any advice they can provide.
Understand What Questions to Ask Your Flood Insurance Agent
If you are prepared, asking your flood insurance agent questions can be an extremely informative time. You do not always have a flood insurance expert who is at your disposal to answer your questions. Make sure that you do your due diligence and learn everything you need to do before making a decision about your flood insurance.
To learn more about the latest information in flood insurance, finance, and more, take a look at our other pages!
