If you are a prospective homeowner or recently purchased a home, you will want to be aware of your options regarding flood insurance and hurricane insurance. Many homeowners learn the hard way that their homeowner’s insurance policy doesn’t cover any property damage from a hurricane or flood unless they purchase additional coverage packages. If you live in an area that could be affected by either of these natural disasters, then you need to buy a separate flood insurance policy so that your home and property will be covered in the event of a disaster. Most attorneys suggest that you purchase this policy even if your location has not been flooded or been the target of a hurricane in decades. Oftentimes people on the coastline will need these policies put in place, but if you live on a levee or near a stream that may flood in a heavy rain, then it is wise to make sure that you have a policy that could cover the damages you may have to deal with in the future.
You can typically locate flood insurance from your insurance broker or you can obtain an agent through the National Flood Insurance Program which is managed by the Federal Emergency Management Agency. This program provides coverage up to $250,000 for property and $100,000 for household properties. Most of the time, both of these are different packages, so you will want to purchase a property policy and a contents policy in order to get optimal coverage. You can also purchase excess flood insurance from private insurers if you don’t think that these plans will cover your possessions in the event of a flood. According to other National Flood Insurance Program, a typical flood insurance policy costs less than $570 per year, and is absolutely worth it in the event of an emergency.
If you live in a high-risk flood zone, then chances are that your lender for your mortgage is required to make sure that you purchase flood insurance. If you somehow managed to avoid purchasing flood insurance in a high-risk flood zone because you were not informed of the requirement, then you may be able to take up a case against your mortgage broker for the mistake. If you live in a low-risk to moderate-risk flood zone chances are that you will not be required to purchase insurance but you may want to purchase anyway as a precaution. According to the Federal Emergency Management Agency (FEMA), about 25% of all flood insurance claims from areas that are considered a low to moderate flood risk area. If you live in one of these areas, then chances are that you also qualify for a preferred-risk policy, which is much less expensive than the policy in flood-zones.
When your home is flooded or damaged by a hurricane, the policy won’t cover every single type of damaged that was incurred. Instead, you will want to be aware of the limitations on a flood insurance policy. The policy will not cover any water that comes from inside your home. For example, if in the midst of a hurricane a pipe burst inside your house and causes damage to your wooden floors, then this would not be covered. Instead, the water must come from outside your home and seek in to the house. You also can’t expect any reimbursement for damaged landscaping and gardens on your property. As well, swimming pools are not covered in flood insurance policies. If something goes wrong with your pool and this causes a flood, it will not be covered because this is not pertaining to a natural disaster.
As well, small floods don’t count in these instances. Water must over at least two acres of land or have affected at least one other property to be considered coverable by your insurance policy. If your home sustains mold or mildew damage that could have been prevented had you taken certain precautions, then the flood insurance policy also won’t cover the repairs for these damages. If the flood destroys currency, precious metals, valuable documents or stock certificates that were stored in your home, then these will not be covered by your policy. For example, if you had a safe full of cash in your home that was damaged in the flood, then you will not be able to recoup that cash with your insurance policy.
Most improvements in below ground areas are also not covered by a flood insurance policy, and you most likely will not be able to obtain compensation for any living expenses such as a hotel rental while you repair your home or time off work while you supervise the repairs at your home. If you want more information about flood insurance policies or want to dispute your insurance provider with a real estate lawyer at your side, then local an attorney on this directory today to provide you with assistance.