If you are caught up in any of these natural disasters, you will be alone to repair any damage that may occur.
Another thing that is not covered in the homeowners policy is sewage accumulation and water seepage. There are some companies that offer special policies to cover sewage backup, but it comes at a cost and you will need to check with your insurers to find out if it is available. Water seepage, on the other hand, is generally considered a maintenance problem and it is not possible to take cover. The best way to protect your home against this is by regularly maintaining your property.
Flood damage insurance policies are available to protect your home from flood damage. These are often referred to as “single peril” insurance coverage policies. The NFIP or the National Flood Insurance Program offers you coverage for any natural flooding that may occur due to storm surge, torrential rain, levee failures, and blocked storm drains, to name just a few. There are certain criteria that must be met before any insurance policy is activated at these events. Any flooding must have affected at least two or more properties and the waters covered a minimum of two acres of surrounding land.
Some homes mortgaged or purchased by regulated lenders must have flood insurance, especially if you live in an area designated as a high-risk area. To determine if your home is in a high risk area, flood maps are used to assess the probability of flooding in your region. In these areas it is mandatory to have flood insurance.
Those who live in low-risk regions will not normally need to have flood insurance, but it is always better to be safe than sorry. Recent NFIP studies found that nearly a quarter of all flood damage claims came from low to medium risk areas. Home insurance that is considered in low to medium risk regions is usually cheaper and is known as “preferred risk” policies.
Flood insurance can be purchased through your own insurance agent or you can always visit the official FloodSmart.gov website. There is no point in going online and trying to get deals on flood insurance, as the rates are set by the NFIP and guided by flood maps.
If you are considering purchasing flood damage insurance but are viewing the weather reports thinking you could wait and save money by hearing when a hurricane is predicted to make landfall, be aware of this little-known fact: there is a 30-day waiting period before of your policy. It will enter in vigor. There are only two exceptions to this rule; First is when the insurance is purchased because it is mandatory in your area, or when the policy is purchased within the first year of a flood map change.
If you live in a high-risk area, flood damage will occur whether or not you have insurance, making sure you have the right kind of coverage can make it less of a pain on your pocketbook.
