Flood insurance is usually a separate insurance policy that protects your home and property in the event of flood damage. The usual household insurance, like household insurance, does not usually cover flood damage.
Do we need flood insurance?
In some cases it may be necessary to take out flood insurance. FloodSmart.gov says that if you own a home in a country with a high risk of flooding, your borrower may ask you to get flood insurance.
Flood insurance is not only suitable for houses in risk areas. The Federal Emergency Management Agency (FEMA) says all 50 states have been flooded, and more than 20 percent of the damage it handled comes from areas of medium to low risk.
Who are eligible to buy flood insurance?
Flood insurance is generally available to people in communities participating in the National Flood Insurance Program (NFIP). Homeowners, business owners, and renters looking to protect their homes, buildings, and property can purchase flood insurance through local insurance agents. (Landlords can take out separate flood insurance to protect their home.)
Coverage of flood insurance.
So what helps with flood protection? FEMA says you can buy a cover to protect your home, personal effects, or both. Here are some principles for these two types of coatings:
Building Property Coverage:
- What does it protect?
The physical structure and infrastructure of your home. Plumbing and electrical systems. Central air and heating systems. Bookcases, cabinets and chalkboards; And a separate garage (other detached buildings require their own policy).
- How to normally pay?
Based on the replacement cost (the cost of repairing the house today in dollars) for the first stay and the real value of cash (which is a depreciation factor) for a vacation home.
- Maximum Coverage Limit.
Personal Content Coverage:
- What does it protect?
Clothing, furniture, electronics; Curtain; Some portable freezers and groceries inside; And some valuables like art (to some extent).
- Payment method for the coverage.
Based on the actual cash value (taking depreciation into account).
- Maximum Coverage
How to purchase flood insurance?
It is equally important to know what the flood insurance does not cover. Here are some examples of material and cost types that the NIV considers outside of the scope of flood primary insurance:
1. Moisture or mold / mold damage that “the homeowner could have prevented”
2. Coins, precious metals, and securities such as stock certificates
3. Outdoor features like patio, fence, courtyard, landscaping, fountain, sewage, hot tub, and pool
4. Living expenses, e.g. B. Temporary housing (if flood damage makes your house uninhabitable).
5. Cars and other self-driving vehicles (however, if you have fully comprehensive insurance, auto insurance can protect your car to a certain extent).
In addition, flood insurance, if available, provides limited coverage for underground spaces such as crawl spaces, basements and their contents, according to the NFIP. Some items in these rooms (e.g. stoves) are usually covered by the building. Other devices (e.g. washing machine / dryer) are usually covered with personal items. Some items, such as your personal effects, may not be insured at all when stored in basements.
Talk to a representative to find out the details of your flood insurance coverage, hardship, and limitations, and to help you make the right choice for your situation. Of course, you have to keep in mind that floods are not the only possible source of water damage in your home. Therefore, in addition to knowing the potential benefits of flood insurance, you should also check the coverage of your home insurance.
Equipped with the right insurance knowledge and the right insurance coverage for you, this will protect your home from water damage.