Everything You Should Know About Flood Insurance
Do you have any idea that the odds of your house being damaged by flood is higher than fire? The truth is, floods are the main cause of natural disasters in the US. Numerous people and homeowners as well actually don’t know that their standard home insurance lacks of coverage for damages caused by floods. In this case, only flood insurance would help a homeowner to recover from these losses.
There are two main reasons why floods take place in a county or city, torrential rainfall and hurricanes. If you are someone who lives in flood risk zone, then it only becomes necessary to buy flood insurance to protect your home. But not because you are living far from coastal areas and rivers, it doesn’t mean that you don’t need such insurance because flooding can even take place in inland areas too.
In the next paragraphs, you are going to uncover the benefits and features of buying flood insurance for your home.
Number 1. Building coverage – with such coverage, this is going to provide protection to the building towards physical damages; applicable for commercial and residential properties.
Number 2. Contents coverage – for this coverage, it offers coverage to your personal belongings and other items you have in your house similar to furniture, clothes and ovens.
Number 3. Replacement cost coverage – this is important as it will assist in the reimbursement of cost to replace the house. Normally, this type of insurance can be bought by single family owners and approximately 80 percent of total replacement price may be reimbursed.
Number 4. Waiting period – there is actually a month period prior to the coverage take effect so you should not wait for flood season to buy the policy. This one is applicable to the changes made in an existing policy. It is designed in such manner to be able to avoid claiming of coverage if ever there’s a large storm is approaching and such. On the other hand, this period isn’t applicable to policy renewal.
From homes, condos, apartments as well as business establishments are all applicable for flood insurance. The policies for flood insurance are not as comprehensive as what other homeowner policies. The policy generally cover items for washers and dryers, foods inside the freezer, water tanks, ceilings, stairways, furnaces, walls and oil tanks. The insurance company is going to pay for the basic living expenses similar to food and hotels while your house is refurbished but it will not pay additional expenditures.
As a matter of fact, flood insurance policy can extend to detached garages but you must know that you will be paying for other structures if they’re qualified for coverage under a different policy.