After Hurricane Sandy, some New Jersey residents are still struggling to decide whether they should add flood insurance to their NJ homeowners insurance policies. Many homeowners want the protection but question whether they really need it. Before making a decision, homeowners should make sure to consider the following three reasons that having flood insurance pays off.
1. High Claim Likelihood
For people living in areas that are not considered flood-prone, purchasing flood insurance may seem unnecessary. Surprisingly, though, the National Flood Insurance Program reports that one-quarter of flood insurance claims are filed by people who do not live in high-risk areas.
2. Floods With Unusual Causes
Many people forget that storms and rainfall are not the only causes of flooding. Other weather events, such as heavy snowfall, can lead to flooding. Issues with manmade water supply systems, such as burst water mains, can also cause flooding.
3. Other Factors That Raise Flood Risk
The slope of a yard, the effectiveness of nearby drainage systems, and the homeowner’s maintenance of home drainage systems can all raise the risk that a home will experience water damage. Flood insurance is essential for homeowners with higher-risk properties, even if the property is located in a low-risk area.
Protecting Against the Worst
Since a regular NJ homeowners insurance policy will not address losses from flooding, homeowners should strongly consider purchasing flood insurance to protect their most valued possessions. Although flood insurance may not prove necessary for every home, the potential financial consequences of flooding make this insurance an advisable investment.