Different Features of Flood Insurance
Do you have any idea that the odds of your house being damaged by flood is higher 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 actually brought by a couple of things, 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 because of the reason that flooding takes place in inland areas too, which are far from the coastal areas as well as rivers, still there is 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 – when you opt for this coverage, it offers the protection that you need against any physical damages, which is perfect for residential and commercial properties.
Number 2. Contents coverage – in relation to this, it offers coverage to your personal belongings and all other objects in the house such as 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 is actually a month period prior to the coverage take effect so you should not wait for flood season to buy the policy. And if you have existing policy and made couple of changes to it, it’s applicable too. This has been designed in an effort to prevent claiming coverage if a large storm is approaching and such. On the other hand, this period isn’t applicable to policy renewal.
Regardless if you own a business, an apartment, condo or house, you can take advantage of flood insurance. 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. The insurance company is going to pay for the basic living expenses similar to food and hotels while your house is refurbished but it will not pay 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.