You may think that living in Colorado means you don’t have to worry about the dangers of floods. After all, Colorado is technically a desert, and the state is hundreds of miles from the nearest ocean. Don’t be fooled. Flash floods, climate change, collapsed dams, and unprecedented snowmelt risk the safety of your home. And we’ve experienced a number of historic floods in Northern Colorado even in the last 50 years. In the event of a disaster, ensure the safety of your home with flood insurance in Northern Colorado.
What is Considered a Flood?
The definition of a “flood” is very specific. A flood is a temporary condition where water or mud affects ordinarily dry land.
To be considered a flood:
- The damage affects two or more properties.
- Damage affects two or more acres of land.
- Insurance doesn’t cover water damage contained to your basement.
- Likewise, insurance doesn’t cover wind-driven rain through your roof or wall.
What is Flood Insurance in Northern Colorado?
Purchase flood insurance in Northern Colorado through a separate policy from a private insurance company or through an agent partnered with the National Flood Insurance Program (NFIP).
Policies usually cover physical damage to your building. Coverage includes your home but not the belongings within. Your rate varies depending on your property’s flood risk as well as how much insurance you’ve purchased.
Why Do I Need Separate Flood Protection?
Typically, your homeowner’s insurance policy doesn’t include flood damage. Protect yourself now. Later, any debt incurred by repairing your home and replacing belongings lost in damage from an unprecedented flood won’t overwhelm you.
According to the National Flood Insurance Program, a six-inch flood that hits a 2,000-square-foot home will likely cause about $40,000 in damage.
Keep in Mind
Expect a 30-day waiting period from the purchase date until coverage starts. You can buy a maximum coverage of $250,000 for buildings and up to $100,000 for contents. For those buildings worth more than $250,000, you can increase your coverage to $750,000. Renew your policy every year.
Without coverage, private flood insurance is up to you. Reach out with any other questions you have as a new homeowner. I’m always happy to help.
I'm Lauren Haug! I'm a teacher-turned-real estate agent, and I teach people how to build wealth through real estate in Northern Colorado.
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