The majority of property owners in the state do not have this coverage, but some are starting to change their minds.
The majority of homeowners across Arizona have been learning an important lesson about flood insurance over the last few weeks as they discover that this protection is not included as a part of the standard home policy.
After the recent downpours, it is still likely that most Arizonans won’t buy the coverage, but some will.
Many homeowners are hopeful – and quite expect – that if something should happen, even if they don’t have flood insurance, they will still be able to receive the assistance that they require if the worst should happen. The majority of the people in the state who do have the coverage are those who are obligated to purchase these policies in addition to standard homeowners insurance, when they take out a mortgage on a property that is located in a zone that is prone to flooding.
For the rest of the people in the state, flood insurance is an additional expense that is typically not purchased.
Despite the recent storms, the majority of people aren’t seeing flooding as a serious enough risk to have them buy an insurance policy. What it has done, though, is open the eyes of many people who had thought that they were automatically covered for this type of damage through their standard homeowners policies, which is not actually the case.
This issue is not unique to Arizona. Residents of many other states are also often unaware of the fact that if the waters should rise from massive downpours or rivers that overflow from their banks, for example, then their regular home and property insurance policies will not provide them with coverage for the damage that is left behind. Unfortunately, that damage can often be extensive. The type of water damage that is covered in typical policies is the type that could occur from a burst pipe, for example.
With many still living with very tight budgets, the added expense of flood insurance is often foregone, even when a certain level of risk is present. It is not a cheap form of added coverage and many people feel that they simply cannot afford it.