What Is Flood Insurance?
Flood insurance policies cover physical damage to your property and possessions. Just because you haven’t experienced a flood a flood in the past, doesn’t mean you won’t in the future. Flood risk isn’t just based on history of the property; it’s also based on a number of factors: other factors includes the amount of rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development in your area.
Flood Insurance Policy
The normal homeowners insurance policy coverage limits for Building Property goes up to $250,000 and Personal Property (Contents) should be insured up to $100,000. I encourage my clients to purchase both especially my clients in Florida state and clients who live in flood zones in Illinois, Florida, the Carolinas and other flood zones across the country.
Do Lenders Require Flood Insurance?
Lenders require flood insurance to protect the investment of the asset that has their loan attached. Flood is a risk that is not normally on a regular insurance policy and since a flood could destroy a home and foundation, the lender wants to protect the property and ensure that there is little probability that the home will be unlivable. Flood insurance is available to homeowners, renters, condo owners/renters, and commercial owners/renters. Costs vary depending on how much insurance is purchased, what it covers and the property’s flood risk.
What Does Flood Insurance Cover?
Many things are covered by flood for instance, the insured building and its foundation, the electrical and plumbing systems, central air-conditioning equipment, furnaces, and water heaters, refrigerators, cooking stoves…
Items normally not covered can vary, I will list just a few items not covered by flood insurance:
- Currency, precious metals and valuable papers such as stock certificates
- Property and belongings outside of an insured building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs and swimming pools
- Living expenses such as temporary housing
- Financial losses caused by business interruption or loss of use of insured property
- Most self-propelled vehicles such as cars, including their parts (see Section IV.5 in your policy)
Does My Homeowners Insurance Cover Flood?
If a flood happens and you don’t have a flood policy, most likely your regular insurance policy will not be able to assist, most policies don’t have proper riders and coverage already and without flood coverage, the asset could be in jeopardy.
To be sure that you are fully protected from all of nature’s flood risk and damage to your home or property, feel free to contact me @ 888-449-4977. I am available 7 days a week to help insurance clients shop and find the best flood insurance policies and premiums to ensure the mortgage payment is as easily afforded as possible. Let The Insurance Plaza locate the best flood policy and carrier for you, free of charge.
About The Author: Rashad Carmichael
Rashad Carmichael is one of the leading experts in the insurance and real estate industry. Rashad Carmichael is the President and Chief Operating Officer of Insurance Plaza, a national insurance brokerage company with dozens of wholesale insurance carriers. If you are a home buyer and have higher debt to income ratios and the insurance quote you were quoted has increased at the last minute prior to a clear to close, do not hesitate to contact Mr. Rashad Carmichael at 888-449-4977. Rashad Carmichael has helped countless of home buyers and homeowners with the lowest and best homeowners insurance premiums. Gustan Cho and his team of licensed mortgage loan originators fully endorse Rashad Carmichael. Rashad Carmichael is available 7 days a week, evenings and holidays. Rashad Carmichael of Plaza Insurance is a full service insurance professional and does both residential, commercial, and business insurance business.