The average home insurance policy does not cover floods, and this unfortunate fact surprises many homeowners at the worst possible time. You do not need to live in a flood plain in order to benefit from flood insurance, but it is important to know exactly what will be covered and which families require one of these insurance riders.
Is My Home at Risk?
These policies generally do not become active until 30 days after the first payment has been made, and this means that it is not a good idea to wait until the last minute. Homeowners need to carefully look at a number of variables and speak with a local insurance agent to determine if they are at risk. This form of coverage will help fill in the gaps of home insurance when water damage takes place after heavy rains, hail, damaged levees, and a variety of other situations.
The Extent of Coverage
While this type of coverage does supplement a homeowner’s basic insurance policy, it might not be enough to completely replace or rebuild a home. Most policies offer around $200,000 for the physical structure of the home and an additional $100,000 for personal possessions in the home. This means that a family with a more expensive home or particularly expensive items in their home will need even more coverage on top of their flood and homeowners insurance.
What Isn’t Covered?
Every single policy has its own stipulations, and homeowners must keep in mind that no policy will cover every single scenario that they might experience. There can be quite a big difference between storm damage and flood damage when it comes to insurance policies. If a sewer line becomes cracked and floods an entire neighborhood, then the homeowner will most likely need to seek out financial assistance through the city or whatever party was responsible for the damage.
Every homeowner should take some time to explore all of their options for insuring their home and their property. For many, this will include at least some coverage for floods and other forms of water damage.
A typical home insurance policy does not include flood coverage. Most homeowners discover this when they actually need help, but by then it’s too late. Whether you live in a flood plain or not, you can benefit from flood insurance.
Am I At Risk?
You should buy insurance as soon as possible because policies generally do not become active until 30 days after the first payment. The longer you wait, the more at risk you are. Also, you should speak with an insurance agent to see the risk level of your home. But even if you’re not in a flood plain, you can benefit from this coverage. For example, coverage will fill in the gaps of home insurance when water damage takes place after heavy rains, hail, damaged levees, and a variety of other situations.
Coverage does supplement a homeowner’s insurance policy, but it might not be enough. A policy might offer $200,000 for the structure of the home and an additional $100,000 for personal possessions. If a family has a more expensive home or particularly expensive items, then they will need more coverage.
Every policy has stipulations, but keep in mind that no policy will cover every single scenario. There can also be a difference between storm damage and flood damage when it comes to insurance policies. Also, if a damaged sewer line floods an entire neighborhood, then the homeowner will most likely need to seek financial assistance from the city.
Speak with an insurance agent to determine your level of risk, and to decide if you should purchase flood insurance.