Within the past 50 years, every single state has experienced flooding of some sort. These natural disasters are incredibly damaging and many homeowners do not realize that their home insurance policy will not cover these tragedies. Those that live in an area prone to floods and hurricanes should take a look at just how important these policies can be.
Do I Need Coverage?
There is no simple answer when it comes to deciding exactly what type of coverage a homeowner needs. Even families that do not live near a large body of water may still need this type of insurance. Issues such as a heavy rainfall that floods a sewer line is a common occurrence in practically every state. Homeowners will need to speak with their insurance broker to see if they are currently covered and the risk of flooding in their own area.
What Is and Isn’t Covered
Basic flood insurance policies and riders cover very specific situations. While every policy is different, most state that the flood must affect at least 2 acres and the water must come from outside the home. These policies do not cover water damage from pools and spas. Homeowners will also need to choose if they would like property coverage, content coverage, or a mix of the two. Property coverage will help homeowners rebuild or repair the structure of their home while content coverage will give the owners the cash value of the contents inside their home. Physical money, important papers, jewelry, and firearms are not typically covered.
Keeping Your Costs Low
As with all other home insurance policies and riders, homeowners can alter how much they pay monthly by changing their deductibles. A larger deductible will result in lower premiums, but it will increase how much they are liable for in the event of a flood. For any expensive items such as furs or jewelry, homeowners will need to determine if they would like extended coverage to those possessions. Keeping those items off the property or out of the policy will lower your overall costs.