Final answer:
It is advisable to inform the client that flood insurance can be beneficial even if they do not live in a high-risk flood zone, as it covers external flooding events, not internal water issues. The new sewer lines' warranty does not cover flood damage, and contents insurance may not provide full protection unless specifically included. Therefore, flood insurance should be considered for complete coverage.
Step-by-step explanation:
If a client has recently replaced her sewer lines and is considering flood insurance due to concerns about sewer backup, as a housing counselor, it is important to provide accurate and informative guidance. It is not true that homeowners who do not live in designated high-risk flood zones should ignore flood insurance. In contrast, they may also find flood insurance beneficial as it can cover damage caused by external flooding events that could lead to sewer backup.
While it is reassuring that new sewer lines are covered by a warranty, this does not typically protect against flood damage. It is essential to clarify that flood insurance policies generally do not cover water that comes from inside a home; rather, they cover water damage from external sources such as overflowing lakes, rivers, or heavy rain that leads to flooding. On the other hand, contents insurance may not cover flood damage unless it is specifically added or if it is a special endorsement within the homeowner's policy.
Given this information, it is advisable for the client to review the terms of their contents insurance and to consider flood insurance to ensure more comprehensive coverage against potential flood-related losses.