Experts Recommend You to Never Skimp on These Things

SUPPLEMENTAL HOMEOWNERS INSURANCE

Hurricane Harvey offered a stark reminder that skimping on insurance could leave you financially unable to repair the damage from a natural disaster. Standard homeowners insurance doesn’t cover flood damage; this type of policy has to be purchased through the National Flood Insurance Program. Yet, just 17 percent of residents in the eight counties most directly affected by Harvey had flood insurance, according to a Washington Post analysis.

Just 12 percent of homeowners nationwide have flood insurance policies, according to a 2016 survey by the Insurance Information Institute. On average, a flood insurance policy costs about $700 a year, according to FEMA. That might seem like a lot, but it’s a fraction of the average paid flood claim, which is $31,000. If you don’t live in a high-risk area, you could get coverage for as little as $137 a year, according to FEMA.