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Flood Insurance

Hard as it may be to believe, within the past 50 years, all 50 states have experienced flooding of some kind or another. These natural disasters can be catastrophic and yet many homeowners do not understand the ramifications of not having the proper coverage, for indeed a typical home insurance policy will not cover most flooding events. Those who reside in a region prone to floods or hurricanes should investigate good flood insurance coverage.

There is really no easy answer to aid in deciding exactly what kind of coverage a homeowner might require. Even those who live nowhere near a large body of water might still hugely benefit from this type of insurance. Some examples include, but certainly are not limited to, a heavy downpour that overwhelms a sewer line or a busted pipe, to cite just a few common occurrences that would affect a homeowner in every state. Contact your local insurance provider to see about the risk of flooding and current levels of your coverage.

Basic flood insurance coverage is geared toward very specific situations. While each policy varies somewhat, in general a flood must affect at least 2 acres and the source of the water must come from outside the covered home. Keep in mind that these types of policies will not cover water damage from pools and spas. It will also be incumbent upon the property owner to choose if he or she would like property coverage, content coverage, or a hybrid of the two. Property coverage helps homeowners in the rebuilding or repairing of the structure of the home while content coverage is what can provide the owners the cash value of the contents within the home. Actual cash, important papers, jewelry, and guns are normally excluded from coverage.

Similarly to other home insurance policies and riders, homeowners may change how much they pay monthly by altering their deductible amounts. A larger deductible generally results in lower premiums, but it does increase out-of-pocket costs in the event of a flood. For any valuable items like furs, a coin collection or jewelry for example, homeowners will need to decide if they wish to opt for extended coverage. However, keep in mind that not including such items in the policy coverage will lower your overall expense.