After any natural disaster such as a hurricane or tropical storm, people who experienced home damage learn that their home may not be insured for some of the damage that they experience. It is important for a homeowner to be proactive in learning about the coverage that they have on their home so that they can be certain that their home is properly protected for the risks that they are experiencing.
What is Homeowner’s Insurance and What Does It Cover?
Homeowner’s insurance is often a requirement of a mortgage loan and protects your dwelling from damage. No two homeowner’s insurance policies are exactly the same and care should be paid to the amounts of the premium payments, the deductibles, the individual items covered and excluded, and the maximum amount covered under the insurance policy. For example, fire damage is typically covered as part of a homeowner’s insurance policy, but you will not recover the amount of your deductible or any amounts of damage incurred over the maximum coverage amount. I other words, if your home is insured for $200,000 with a $20,000 deductible, you will receive $180,000 if it is assessed that $300,000 of damage I done to your home.
Beyond fire’s, flooding from burst water pipes and broken windows from trees, as well as a wide range of different sets of damages from parts internal to your home are covered as part of your homeowner’s insurance policy.
What is Flood Insurance and What Does It Cover?
Flood insurance covers water floods over typically dry land that is caused by something outside of your home. As such, while burst water pipes in your home from a deep freeze may be covered under your homeowner’s insurance policy, storm surges from burst levy’s or major storage are covered under flood insurance.
In other words, flood insurance protects from elements outside of your home leading to damage to your home through flooding, while homeowner’s insurance covers damage relating to factors inside of your home.
Who Provides Homeowner and Flood Insurance?
There are a number of different homeowner’s insurance providers in each area and many homeowner’s can receive competitive bids from these different insurance providers to lower their rates. Flood insurance can be trickier. Flood damage is significant for a homeowner and leads to serious costs for restoration in many instances. This is particularly true when it involves flood damage from salt water which is corrosive and can lead to fires due to electrical damage. Flooding causes mold, structural weakness, and destroys many appliances and furniture, making them unusable. Due to the significant cos of restoration many insurance companies don’t provide flood insurance though homeowner’s can often receive protection through the National Flood Insurance Program, which provides affordable coverage for your potential flood damage. Alternatively, many traditional insurers will provide flood insurance but at potentially high premiums depending on where your home is located and how close it is to the traditional source of flooding.
Be sure to review your homeowner’s policy to see what is covered in it and if you live in, or near, a flood prone area consider signing up for flood insurance.