Flood damage is not covered by a standard homeowners insurance policy. However, your insurance company can provide you with special insurance that will cover losses you incur based on flooding, The federal government guarantees the insurance policy. If you do not have an agent the insurance can be purchased directly from the National Flood Insurance Program . According to the Federal Emergency Management Agency (FEMA) about 20 percent of losses due to floods occur in areas that are considered low to moderate risk. Purchasing a flood policy for homes in these areas is modestly priced.
If you would like to find out your risk factor visit the NFIP website, if you think flood insurance is a luxury and not a necessity visit the NFIP flood simulator website and learn how much damage a small amount of water can do to your home.
Homeowners need to be aware that this insurance will cover the cost of rebuilding your home, but, your possessions are covered only for cash value, not replacement cost. This means that if you purchased a flat screen TV six years ago, the insurance company will pay you the cost of buying the TV minus seven years of depreciation. This has befuddled many folks who filed claims with the National Flood Insurance Program when they discover that they money they receive to settle their claim is not enough to replace their belongings.
There is a solution, it is known as excess flood insurance and it extends your coverage further than the NFIP policy does. You can extend coverage limits, opt to raise your personal protection from flood damage to provide replacement cost and choose other coverage options. To obtain this type of insurance it is best that you discuss your needs and coverage goals with your flood insurance agent.
Storms are becoming stronger and even low risk commercial property and residential properties can be severely damaged in areas that were once considered safe. Check with your insurance agent so that you know your property is protected and you will have peace of mind.
In case of any loss, the homeowners policy protects you and your family from any damages to your personal property. Different endorsements and the coverages are provided by the home insurance company and these added endorsements meet the individual needs. To rebuild and repair your home this home insurance is needed.
It does not matter whether you are the owner of the house or a tenant, every one needs to have their home insured to protect from any disasters. There are few basic things which you must know before you buy home insurance to protect your living.
Flood Insurance: Catastrophic losses that occur due to floods is the reason why insurance companies are not ready to take up flood insurance. This was the reason to start National Flood Insurance Program (NFIP). You cannot buy flood insurance if your local government does not qualify for NFIP. To reduce floods, flood plain management regulations has to be adopted. Many homeowners who stay in the flood prone areas will not be aware that they have to buy this coverage. If you do not live in flood plain area then there is no need for you to buy the flood insurance. The buildings and its contents are covered in the flood insurance.
Earthquake Coverage: In the state of Kentucky, there have been many small earthquakes, though they are not big ones. In Kentucky the risk of serious earthquake is fairly low so the insurance companies sell the earthquake endorsements. Coverages are comparably cheaper here. Higher will be the deductible rates and ranges from 3 to 5 percent of the home’s replacement cost. Frame houses are more safe than brick or masonry houses because these houses are more prone to damages when there is an earthquake. You’ll have to pay more earthquake coverage for brick houses.
Sometimes when you’re buying homeowners insurance, it pays to think outside the box. Or, in this case, outside of the flood zone. Although standard homeowners insurance companies don’t offer flood insurance, your mortgage company will put up a serious fuss if you live within a flood zone and don’t buy it. They’ll actually do more than put up a fuss, but that’s another discussion entirely. Alas, even if you don’t need flood insurance, you might want to consider getting it.
Why on earth would anyone do that? Lots of reasons. Here are a few:
• Just because you don’t live in a flood zone doesn’t mean you’ll never experience a flood. And if that happens and you’re not covered, you’re out of luck.
• There have been billions paid out in flood insurance claims over the course of the last 30 years to homeowners who don’t live in flood-prone regions. This is clear indication that flooding happens a lot, even for homes that aren’t in high risk areas.
• Developments in and around your neighborhood could raise your flooding risk. Are you putting in a pool or do you have a neighbor who’s doing so? This is just one of many scenarios that can increase your home’s flood risk.
When comparing online home insurance quotes, allow for an extra $370 per year to cover for flood insurance through the National Flood Insurance Program. The average cost boils down to about $1 per day but could be more or less, depending on your location. If you’re not sure how to go about obtaining flood insurance, contact your home insurance provider. They’ll be able to point you in the right direction.
NFIP (National Flood Insurance Program) had a count of over 4.4 million holders of their policy in US, totally nearing $673.2 billion for insurance coverage. Approximately 280,000 structures are recognized as flood plain areas located in Ohio and only 10% of those flood occurring areas are protected by flood insurance. Ohio’s loss picture statistics is clear with a figure of 15,071 losses and it’s payments nearly of $109.5 million. Looking at these statistics, flood insurance is a must for every Ohioan. Be a own house, rented, condo or a villa, owning a flood insurance if your location is prone to floods becomes necessary.
Floods are such natural disasters which are not easy to predict. Many predictions have gone wrong resulting in heavy damages costing lives. An Ohioan will be found suffering from severe financial aftermath of a flood which they had never dreamt. Still many are unaware about the fact that their home insurance does not cover flood. When discovered later to a major hit to their surprise, they regret.
Flood Insurance Basket
Most homeowners insurance policies do not cover high priced flood damages. Floods can be caused by hurricanes, melting snow, heavy storms, water backup due to overloaded drainage systems. All such scenarios are highly unpredictable. Flood insurance covers loss to your property, from structural damage to debris cleanup. You can make an inventory of all your priced possessions in your home and cover them by purchasing separate coverage, something that your home insurance policy does not offer when flood occurs.
Flood insurance is not mandated by state or any insurance company but it is required by a mortgage lender. If your home is prone to flood, do not wait for a lender or an insurer insist you to buy. It is available through NFIP. It is always better to purchase both building and contents coverage for the broadest protection. Talk to your insurance agent today to enquire about it and to obtain flood insurance, it is a necessity. Even though flood insurance is a federal program, insurance companies sell the policies.