Believe it or not, there is a bigger possibility for your house to be damaged by flood 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 relation to this matter, flood insurance can be a big help to any homeowner in recovering their losses.
There are two main reasons why floods take place in a county or city, torrential rainfall and hurricanes. If you want to protect your home, then it is just smart consider investing in a flood insurance policy, more so if you are living in a flood risk zone. But because of the reason that flooding takes place in inland areas too, which are far from the coastal areas as well as rivers, still there is a need to buy one.
There are many good features for flood insurance and few of them will be discussed in the next paragraphs.
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 imperative as it provides assistance to reimburse the accumulated cost to replace the house. In most cases, single family owners are likely buying such insurance and around 80 percent of the total replacement price can 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 is applicable as well to changes made in existing policy. This has been designed to be able to prevent claiming coverage if large storm is approaching and such. On the other hand, this period isn’t applicable to policy renewal.
Regardless if you own a business, an apartment, condo or house, you can take advantage of flood insurance. As for the flood insurance policy, it is not comprehensive like what homeowner policies. Generally, the policy covers washers and dryers, foods inside the freezer, water tanks, stairways, ceilings, oil tanks, furnaces and walls. Insurance company will be paying for the basic living expenses like food and hotels while your house is repaired but it won’t pay additional expenditures.
Flood insurance policy extends to detached garages however, you need to pay as well for other structures if they’re qualified for coverage under different policy.