Flood damage can be one of the worst things that can happen to your home or business. In addition to ruining any possessions that become submerged, floods can also result in substantial structural damage to the building. Luckily, flood insurance is not only available, but it is often mandated for those living in areas that have histories of experiencing floods. However, if you have only recently acquired a building in a floodplain, there is a chance that you may have two questions that need answering before you choose a policy. 

What Does Flood Insurance Cover?

There can be many variations in the exact things that are covered when this damage happens depending on your policy, but there are some things that are universal for these policies. Firstly, your plan should pay for any structural damages to the building, cleanup of water left behind by the floods and compensation for any possessions ruined by the flood waters. 

Many plans will also pay for lodging if the damaged building is a residence, and businesses may qualify for revenue replacement. However, these are often addendums that must be purchased separately from the primary plan. While this can add to the monthly cost of premiums, the extra protection can prove more than worth it if your building suffers this type of damage. 

Are There Any Steps That You Can Take To Reduce Your Flood Insurance Premiums?

Unfortunately, there are some individuals that may find the monthly premiums for this type of insurance difficult to pay. However, it should be noted that many plans have recommended upgrades individuals can make to their homes to help lower the premium. While many of these upgrades will require extensive modifications to the home, there are some simple and affordable ones that can still yield substantial savings on premiums. 

For example, you may be able to lower these costs by installing emergency vents in the building. These vents are often installed in the floor or along the baseboard, and they are designed to allow floodwaters an easy way to drain out of the building. By removing the floodwaters as quickly as possible, you can help minimize the damage to the building which will lower repair costs. There may be many other options available to you, but you will need to consult with your policy or insurance agent to determine what other upgrades you should consider. 

Flood insurance is one of the most effective ways of protecting your home from the ravages of this type of damage. Unfortunately, if you do not understand these policies, you will be unlikely to get the most for your money. By understanding what is covered under this type of protection and the steps you can take to lower premiums, you can help ensure that you get the most from your policy.