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Different Features of Flood Insurance

Were you mindful that your house has bigger odds of being damaged by flood than fire? In United States, floods are a major factor right after dealing with natural disasters. Numerous people and homeowners as well actually don’t know that their standard home insurance lacks of coverage for damages caused by floods. In this case, only flood insurance would help a homeowner to recover from these losses.

Floods are actually brought by a couple of things, torrential rainfall and hurricanes. If you want to protect your home, then it is just smart consider investing in a flood insurance policy, more so if you are living in a flood risk zone. But due to the reason that flooding also takes place in inland areas, which are far from coastal areas and rivers, there’s still a need to buy one.

There are many good features for flood insurance and few of them will be discussed in the next paragraphs.

Number 1. Building coverage – with such coverage, this is going to provide protection to the building towards physical damages; applicable for commercial and residential properties.

Number 2. Contents coverage – in relation to this, it offers coverage to your personal belongings and all other objects in the house such as furniture, clothes and ovens.

Number 3. Replacement cost coverage – this is vital as it assists in reimbursing the cost to replace the house. In most cases, single family owners are likely buying such insurance and around 80 percent of the total replacement price can be reimbursed.

Number 4. Waiting period – there is actually a month period prior to the coverage take effect so you should not wait for flood season to buy the policy. And if you have existing policy and made couple of changes to it, it’s applicable too. This has been designed in an effort to prevent claiming coverage if a large storm is approaching and such. On the other hand, this period isn’t applicable to policy renewal.

Be it businesses, apartments, condos and homes, these are all applicable for a flood insurance policy. Policies for flood insurance aren’t as comprehensive as most of the homeowner policies. Generally, the policy covers washers and dryers, foods inside the freezer, water tanks, stairways, ceilings, oil tanks, furnaces and walls. It is the insurance company that will pay for basic living expenses like hotels and foods while your house is being repaired but you won’t have to pay for additional expenditures.

Flood insurance policy does extend to detached garages but you have to pay for other structures if they are qualified for coverage under different policy.

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