Water can cause a catastrophic damage to the house, whether it’s a flooding river or a sewer backup. This uncontrollable force can damage not only belongings and appliances inside the house, but it can destroy the dwelling and the foundation of the building.
You may ask – why Flood Insurance is needed if there is a general Homeowner’s Insurance which covers almost all risks which may lead to the property’s damage.
Many homeowners, especially those who have never dealt with Insurance, don’t know that typical Homeowners Insurance does not include such peril as Flooding. Still, a standard Homeowners Insurance does cover the damage caused by the storm and heavy rains. Read here what exactly is covered by the Homeowners Insurance.
Should you consider buying Flood Insurance?
First, the Insurer will evaluate the water-caused risks for your house. If your house is located in the area with the high risk of flooding – you will pay considerably higher premiums than other individuals – homeowners.
Insurers understand and define flood as water which has been released (or escaped) from the lake, river, water house or another reservoir of the water into the “normally dry land”. If your house was damaged by that water – it’s a subject for coverage.
If your house is located in the high-risk area of flooding, without a Flooding Insurance you may find yourself financially unable to restore the house after the water-caused damage.
What is covered by Flood Insurance?
Flood insurance, in spite of not being a mandatory for a homeowner, may become a mandatory in case the property is under the mortgage.
Your personal belongings inside the building:
That includes all portable electronic appliances and gadgets, furniture, clothing, curtains, carpets.
The fridge and food freezers, musical instruments, home business tools and artworks are covered as well.
The building and the foundation, all permanently installed (built-in) constructions and appliances, air conditioners, electrical systems. The following expenses for debris removal after the disaster are covered as well.
What is excluded?
Everything which was exposed to the potentially preventable damage is uncovered. That means if the owner could have saved the property but didn’t take proper actions to prevent damage – those items are out of policy coverage.
Also, all constructions located outside the insured house are not covered. That includes patios, tables, trees and swimming pools.
Your cars, as well as automobile parts, are uncovered by the Flood Insurance.
“Use of loss” is also uncovered. That means if you will need to rent temporarily another apartment until your house is restored, all expenses you’ll have to cover from the own pocket. That is also fair for financial or business loss caused by the flood, when you had to stop your business processes due to flooding-related issues.
For having “Use of Loss” covered, consider buying a Homeowners Insurance.