Many people believe their homeowners policy will cover them in the event of a flood, but that’s usually not the case. And the damage that can be the result of even a smaller amount of water from flooding can be very costly. Therefore, purchasing a good flood insurance policy can make a huge difference should a flood event occur.
What is it?
Flood insurance protects the structure of your home and the personal contents within up to a pre-determined amount should a flood strike.
This kind of coverage is often mandated for homeowners and those who are tenants or landlords in high-risk flood areas. However, though it is not required for those who live in moderate or less risky areas, purchasing a policy can often be a wise move.
How it functions
Should your home or business be properly insured when a flood occurs, the insurance provider will have an adjuster assess the damage and then provide compensation to the insured to handle the costs of the loss of your personal contents and any necessary repairs to the physical property.
The kinds of insurance available
Insurance coverage comes in the forms of protection for residential structures and the contents within, residential renter belongings, business structure and contents, and multiple family dwellings.
The biggest and obvious plus of good flood insurance coverage is the protection it provides for property that can be damaged in a flood. With a usual insurance policy, you will likely pay an average of $700 per annum for coverage. This amount is hugely less than the average cost of repairing damage that can be the result of flooding, often estimated at close t0 $40,000. Another big plus is the coverage that can be extended for hotel stays and food costs should your home be under repair.
Knowing policy details is a big step forward in realizing the peace of mind in having your property and its contents safeguarded.