WATER DAMAGE AND HOW IT AFFECTS YOUR FINANCES

Money isn't everything and this is no clearer than in times of disaster.

For instance, take flooding.

Most people would rather protect their family members and precious family heirlooms before they would rush to save a few spare dollars or a fancy new gadget.

Some things in life are priceless. Other things are just expensive.

Nevertheless, no matter how soulful a person is at heart, cutting back on expenses is very important in life. Your personal finances play a small part in your life, happiness and relationships with others.

Unfortunately many people think too highly of their finances and feel they cannot part with their money. They choose to believe that a flooding disaster could never happen to them, and instead invest their money in more profitable ventures.



When Disaster Strikes

However, when disaster finally strikes, then these homeowners are just as wet as their drenched home. Without any flooding insurance, they are forced to rely on the goodness of their neighbors and the quick action of the federal government.

Not surprisingly, sometimes it is a very long wait. Restoring a home can be costly, costing several hundred dollars just to repair furniture, carpets and contaminated floors.

The Really Big Expense

Then comes the remodeling and repairs. Hiring electricians and contractors is much more than just costly-it can be a thousand dollar investment. Flooding may cause your walls to rot or crack, the ceiling tile to develop mold and the floor to be pushed out of level. The more serious the damage, the more likely it is that a total remodeling job may be needed.




Flood Insurance

By saving a few hundred dollars a year, many people are gambling with thousands of dollars. While not cheap, most flood insurance is not that expensive. The average yearly fee is between $300.00-$500.00 a year, with some additional cost for high-risk areas. Some companies offer flood insurance for as low as a dollar a day for the entire year.

An interesting statistic: did you know that near 25% of all flood claims occur outside of high-risk areas? It seems there are just some things in life you can't bank on. There is however such a thing as insurance, for people who choose to invest in safety.