Flood insurance, what it covers and its benefits

When seeking insurance coverage for their home, most people only consider homeowners’ insurance coverage. Nevertheless, many insurance companies don’t include flood coverage in their homeowner’s packages.

Flood insurance coverage caters to a building and the contents in it against destruction due to flood. A home insurance policy does not cover damage as a result of a flood. Thus, any business person or homeowner in a place prone to floods needs to consider obtaining a flood insurance policy.

What flood insurance covers 

A flood insurance coverage caters to two types of property, namely: the structure and the contents of your home.

The cover for your structure basically includes:

  • Foundation
  • Electrical and plumbing
  • Water heaters
  • Cooking stoves,
  • Carpets permanently installed on an unfinished floor
  • Central air systems and furnace
  • Refrigerators and built-in appliances

Contents in the home covered by the policy include:

  • Clothing
  • Furniture
  • Washers and dryers
  • Electronics
  • Dishwashers
  • Portable air conditioners and microwaves

When you acquire flood insurance, make sure to carefully look at categories of property in the house. It is vital to know the approximate value of each item and insurance policy coverage limits compared to your estimates. Certain categories may have limits below the value of your possessions that qualify.

For instance, furs and artwork usually have a limit of about 2,500 dollars— that is, the insurance company will reimburse at most 2,500 dollars in the event they get damaged. Due to the high value or priceless nature of items like fur and art would take a few items, probably just one, to reach the limit. Therefore, you should find out whether there is more protection to buy for these specific categories.

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