Flood Insurance Features
Were you mindful that your house has bigger odds of being damaged by flood than fire? In United States, floods are a major factor right after dealing with natural disasters. A lot of people aren’t aware that standard home insurance does not offer proper coverage for damages that were caused by floods. In relation to this matter, flood insurance can be a big help to any homeowner in recovering their losses.
Floods are actually brought by a couple of things, torrential rainfall and hurricanes. If you are someone who lives in flood risk zone, then it only becomes necessary to buy flood insurance 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 – in this regard, it is providing coverage to your personal belongings as well as other objects in the house like furniture, clothes and ovens.
Number 3. Replacement cost coverage – this is imperative as it provides assistance to reimburse the accumulated cost to replace the house. Normally, this type of insurance can be bought by single family owners and approximately 80 percent of total replacement price may 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 one is applicable to the changes made in an 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.
Be it businesses, apartments, condos and homes, these are all applicable for a flood insurance policy. As for the flood insurance policy, it is not comprehensive like what homeowner policies. Generally, the policy covers washers and dryers, foods inside the freezer, water tanks, stairways, ceilings, oil tanks, furnaces and walls. 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 does extend to detached garages but you have to pay for other structures if they are qualified for coverage under different policy.