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. Most people are not aware that the standard home insurance doesn’t provide coverage for damages that were caused by floods. For this reason, it will be smart to get flood insurance in an effort to get assistance from all the losses that will occur.
Floods are brought by 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.
There are lots of convincing reasons for getting flood insurance and some of them are discussed in the following paragraphs.
Number 1. Building coverage – with this coverage, it provides protection to the building against physical damages both for commercial and residential properties.
Number 2. Contents coverage – in relation to this, it offers coverage to your personal belongings and all other objects in the house such as 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’s a 1 month period before the coverage takes effect so don’t wait for the flood season to buy the policy. This is applicable as well to changes made in 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.
Be it businesses, apartments, condos and homes, these are all applicable for a flood insurance policy. Policies for flood insurance aren’t as comprehensive as most of the 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. 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.