What is a flood insurance?
Flood insurance is the insurance of homeowners, which includes damage caused by floods, from the need to replace the house to repairs, such as replacing floors and walls. This type of insurance is usually not included in the standard insurance policy and must be purchased at additional costs. People who live in the regions susceptible to floods should certainly consider flood insurance because it will allow them to recover faster from floods.
floods can cause great damage. Even if it does not destroy the home, it can fill the house with mud, mud and other debris and moisture from floods can lead to rot, mold, mold and other problems. Recovery after the flood tends to be very expensive because it may be necessary to rebuild or replace many items, while the inhabitants remain in temporary rocks, while their home is again habitable. Item insurance alleviates these costs and is particularly valuable to people who do not have much money because these units could be forced to leave their homeOva after the flood because they can't afford to fix them.
When the flood insurance is set, the insurance company examines the house and its location to determine the risk. Houses in floodplains, low countries and regions susceptible to hurricanes and other serious storms are exposed to an increased risk of floods, as well as houses in Arroyos and other dry valleys that could experience floods. The costs of flood insurance differ depending on the location of the house, with many nations are divided into "flood zones" by insurance companies to help them calculate the risk.
Some insurance companies will not write flood insurance, because flood insurance tends to be prone to a phenomenon known as an unfavorable selection: only people who are exposed to floods will buy it. As a result, the insurance company does not have a large risk fund, worsens the demands on the insurance company more expensive. If the insurance company does not offerThe flood insurance may be able to hand over the homeowner to another insurance company that will be or a government plan that subsidizes flood insurance.
Some governments require people in areas susceptible to floods to obtain flood insurance, especially if they receive government aid to help them recover from floods. In the United States, the National River Basin Insurance Program provides flood insurance throughout the country, who may not be able to obtain it otherwise, and the recipients of federal disasters after floods must usually agree to the purchase of flood insurance under the terms of the funds.