Finance

Everything You Should Know About the Home Owner Flood Insurance

Many homeowners are confronted with the problem of flooding. The images of buildings submerged in water are particularly scary. Even though you may have not been a victim of flooding or may not know anyone who has, it is best to take proper precautions against such a situation, especially if you live in or near a flood-prone area. There is something called a homeowner flood insurance that you can avail and this policy will cover all of your personal property. It is extremely important to opt for this insurance cover, especially with the increased frequency of natural calamities owing to the various environmental factors.

Get awareness of whether you live in a flood plain. Many people have no clue whether or not they are living in a flood plain or an area which can be flooded. It is possible that within 25 miles of the place you live there is a large river which is protected by a dam. The failure of the dam might cause that area to be flooded. Hence, wisdom is to check with the local authorities if your house falls on a flood plain. In case it does then it is absolutely imperative that you get a homeowner flood insurance which is basically home insurance for flood areas. 

A very important thing that people usually do not realize is that although it is a homeowner’s policy, it will not cover the damages that occur due to flood. The flood insurance policy will only cover your personal property in entirety, replacement or repairing of the foundation of the building and replacement of the interior walls. In the absence of flood insurance, you will have to cover for these expenses from your pocket.

The problem is that no one thinks that it might happen to them but it is not the nature of accidents or disasters to warn. Like always, there is no better measure than taking precautionary measures to reduce the effect of damage. Opting for flood insurance will offer the peace of mind as you will know that in the event of a flood, your home is covered.

The flood insurance does not come under the usual home owner’s insurance. Home and flood insurance are two different insurance policies. There are a few insurance companies that provide flood insurance and it comes with its own pricing, conditions, and terms. This insurance is not something every homeowner needs to consider, it only becomes important if you have a house in a designated flood area. It is the Federal government who designates these areas by evaluating its proximity to oceans, rivers, dangerous flooding zones and dams. This insurance is still available for people living in areas which have not been marked as flood zones but it is only optional. However, it is best to opt for this insurance policy even if there is a history of your house being flooded from heavy rainfall, small ponds or snow melts.

Along with the insurance covering the damages to furniture, home structure, rugs, furnace, appliances, clothing in the basement area and water heater, it also covers the expenses incurred to avail protection against the damage caused by flooding like sandbagging. It also covers certain costs incurred after the flood, for example, in removing the debris. It is not expensive insurance and the coverage benefits easily outweigh the costs one will incur on repairing and replacement after flooding. There is also something called PRP or Preferred Risk Policy meant specifically for houses located in areas facing low to moderate risk of flooding. You can avail flood insurance through government entities or private companies.

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