Different Features of Flood Insurance
Were you mindful that your house has bigger odds of being damaged by flood than fire? In reality, floods are the primary cause of natural disasters in United States. A lot of people aren’t aware that standard home insurance does not offer proper 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’re living in a flood risk zone, then it becomes necessary to buy flood insurance to be able to protect your home. But due to the reason that flooding also takes place in inland areas, which are far from coastal areas and rivers, there’s still a need to buy one.
There are many good features for flood insurance and few of them will be discussed in the next paragraphs.
Number 1. Building coverage – with such coverage, this is going to provide protection to the building towards physical damages; applicable for commercial and residential properties.
Number 2. Contents coverage – for this coverage, it offers coverage to your personal belongings and other items you have in your house similar to furniture, clothes and ovens.
Number 3. Replacement cost coverage – this is important as it will assist in the reimbursement of 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. This period on the other hand is not applicable for renewing policy.
From homes, condos, apartments as well as business establishments are all applicable for flood insurance. The policies for flood insurance are not as comprehensive as what other homeowner policies. The policy generally cover items for washers and dryers, foods inside the freezer, water tanks, ceilings, stairways, furnaces, walls and oil tanks. It is the insurance company that will pay for basic living expenses like hotels and foods while your house is being repaired but you won’t have to pay for 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.