Often homeowner's insurance does not cover flood damage. Flood insurance covers your contents that helps pay to repair or replace your possessions. Floods are one of the most common forms of natural disasters to affect people. Here are five things that every homeowner should know about flood insurance.

1. Floods happen in low-risk flood zones; on average more than 20% of flood insurance comes from low-risk zones, and the average claim is about $30,000. Government assistance may not be available if the incident has not been declared a federal disaster.

2. The average cost of flood insurance is $700 paid annually, making it $58.33 monthly that is affordable and worth protecting your most expensive investment. When purchasing flood insurance, do your due diligence when researching rates because discounts are available depending on the scenario.

3. Ensure that you understand how flood insurance works and what it covers. For example, flood insurance coverage for the structure of a home is sold separately from coverage for its contents.

4. Be aware of your coverage limits. Residential flood insurance coverage maxes out at $250,000 for the structure of a home and $100,000 for its contents. Taking an inventory of your possessions can determine how much coverage you need and make filing a claim easier.

5. After purchasing flood insurance, there is a thirty-day waiting period before coverage begins. Also, you can buy flood insurance at any time.

One of the benefits of purchasing flood insurance is having peace of mind knowing that if a flood occurs, your home and possessions will be safe. Buying flood insurance can bring you comfort and save you unnecessary stress and wasted funds.