A typical flood insurance policy is the kind that covers the home and its contents from damage resulting from storms, including snow, rain and sleet, or other acts of nature, like hurricanes, which cause some form of covered water damage to the home. Several kinds of flood coverage is provided by most companies. Even if you don’t think you will experience flooding like places in Louisiana for instance, you can still be protected at a reasonable rate via a “Preferred Risk Policy,” which is a choice for those living in what are deemed low-risk regions. The level of protection the policy provides is determined by the amount of coverage that is obtained by the homeowner.
Homeowners are well-served by purchasing flood coverage, even if one’s home is situated on a hillside or in some other lower risk area. For example, a home built on a hillside is still prone to damage from a mudflow after a downpour, which is usually considered a result of flooding. Homeowners are wise to consider purchasing coverage that is roughly equal to the expense of rebuilding their residence.
Flood coverage is specifically meant for to help in the repair or rebuilding of a home damaged by flood waters and to replace various covered personal possessions that are also damaged or destroyed by flooding. Usually, homeowners are mandated to first pay the deductible associated with the policy previously to it taking effect. Also, homeowners must stand by for 30 days before the policy becomes in effect.
To figure out what kind of policy to purchase, you would need to determine whether the standard flood insurance coverage is enough for your area. Renters, on the other hand, need only opt for a policy that covers possessions within the home. Homeowners who live in low-risk regions can choose the aforementioned preferred risk flood coverage. In many instances, it is important to note, the mortgage holder or bank lender may mandate additional flood coverage in higher risk locations.
When obtaining a policy, an elevation certificate may be needed to determine the amount of coverage necessary to fully protect your home. To inquire about what type of policy is best for your personal needs, give us a call to discuss the options available in your region.