Believe it or not, a flood can occur anywhere, even on a mountaintop. Sounds ridiculous, right? Well, suffice it to say that flood insurance is absolutely necessary no matter where you live.
When parts of the Midwest recently flooded, one percent or less of Indiana and Wisconsin's residents had flood insurance and they were caught completely off guard.
Homeowners don't usually realize that flood coverage isn't included in most insurance plans. It's too risky for the companies since the chances that a home will be affected by a flood within a 30-year mortgage are high. So the government eventually had to step in and start offering flood insurance on its own because it was more equipped to handle the costs involved. The National Flood Insurance Program provides coverage that pays up to $250,000 for damage to a home.
Flooding can destroy a home as completely as a raging fire. Insurance is necessary to keep families afloat.