When you are trying to decide whether or not to purchase flood insurance, there are several things you should bear in mind so that you can make the right decision. Many people often mistakenly believe that flood insurance is only for those who live in flood plains and areas that are prone to storms and hurricanes. This is not necessarily the case. Here are some of the major factors to consider when deciding whether or not you need flood insurance.

Do I really need flood insurance?

You should assess your situation carefully to decide if flood insurance is a good investment. Sometimes, even though you may not live in a flood plain, the location and position of your home makes it more likely to flood if rain falls heavily for days. In this case, flood insurance would be a good idea. If you live near any large bodies of water, such as ponds, rivers and seas, it is also a good investment even if the area is not known for flooding. The forces of nature can be unpredictable, and you never know when these bodies of water may overflow due to freak storms or unexpected and continuous rainfall.

 Will my insurance company give me water-backup coverage?

Check your policy carefully. Don't just assume that your homeowner's policy will cover your home for flooding that occurs if water backs up and gets into your house. Most policies will only cover you if your house is damaged from flooding from a storm or hurricane, and flood insurance rates will often be higher for water-backup coverage.  If water backs up into your home from other circumstances, such as a riverbank over flowing, you will need to have water back up coverage for these situations. Read over your policy and ask questions so that you will know exactly what it covers.

Will flood insurance cover plumbing emergencies?

When you purchase water backup endorsement, ask your agent if it covers plumbing emergencies that can cause flooding. Flooding emergencies, such as your sump pump overflowing and causing damage in your basement, may not be covered and you may need to request this kind of coverage. Plumbing emergencies are one of the major causes of flooding in homes, and this type of coverage is essential for most homes. It is often not covered by a standard homeowner's policy and needs to be specifically covered in your water backup endorsement add-on.

Bearing these tips in mind should help you make the right decisions about flood insurance coverage.