Were you mindful that your house has bigger odds of being damaged by flood than fire? In United States, floods are a major factor right after dealing with natural disasters. A lot of people aren’t aware that standard home insurance does not offer proper coverage for damages that were 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 are someone who lives in flood risk zone, then it only becomes necessary to buy flood insurance to protect your home. But due to the reason that flooding also takes place in inland areas, which are far from coastal areas and rivers, there’s still a need to buy one.
In the next paragraphs, you are going to uncover the benefits and features of buying flood insurance for your home.
Number 1. Building coverage – when you opt for this coverage, it offers the protection that you need against any physical damages, which is perfect for residential and commercial properties.
Number 2. Contents coverage – in this regard, it is providing coverage to your personal belongings as well as other objects in the house like furniture, clothes and ovens.
Number 3. Replacement cost coverage – this is vital as it assists in reimbursing the 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’s a 1 month period before the coverage takes effect so don’t wait for the flood season to buy the policy. This one is applicable to the changes made in an 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.
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. In general, the policy is going to cover your oil tanks, walls, furnaces, stairways, ceilings, washers and dryers, foods inside the freezer, water tanks. It is the insurance company that will pay for basic living expenses like hotels and foods while your house is being repaired but you won’t have to pay for 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.