Posts Tagged ‘flood insurance’

Your Common Homeowners Insurance Questions Answered

Thursday, January 28th, 2010

Homeowners insurance is more than just a requirement for a home loan; it is a must for all homeowners who want to protect themselves, their families, their home and their assets.

Don’t take your homeowners insurance policy for granted, as it may one day protect all that you have worked so hard for. With that said, there are a number of common questions homeowners have when it comes to homeowners insurance:

Q:  Does my homeowners insurance cover natural disasters?

A: Perhaps. Certain natural disasters, such as wind or hail damage, are typically covered by most homeowner’s insurance policies. However, natural disasters such as earthquakes and floods are not. The only way to find out what disasters are covered by your homeowners insurance policy is to read the policy. Both flood and earthquake insurance policies can be purchased through the federal government.

Q: Does my homeowners insurance protect my most prized possessions?

A: This is a gray area. Your homeowners insurance should be adequate enough to cover the assets within your home; however, if you have many possessions that are of significant value, such as jewelry and antiques, it is best to take out additional insurance to cover their value.

Q: Will my homeowners insurance provide me with enough money to rebuild in case I lose my home to a fire?

A:  Again, perhaps. There are two different types of policies you can take out: the replacement value or the current value. In other words, if you take out only enough insurance to cover the cost of your home, this may not be enough to build anew home; in which case you would fall short of rebuilding your home. Make sure your policy is written as such as provide you with enough money to rebuild your home and replace its contents.

Q: Where can I shop for homeowners insurance?

A:  Homeowners insurance can be purchased through your local insurance company or it can be purchased online. There are many websites that allow you to get online homeowners insurance quotes and also compare costs between insurers. Many times, purchasing homeowners insurance through the same company who carries your auto insurance policy can save you money, as many insurance companies offer multi-policy discounts.

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Do You Need Flood Protection on Your Home Insurance?

Monday, July 20th, 2009

As you evaluate your needs to obtain the best home insurance policy, you are forced to consider what potential threats and dangers may pose a damage to your house. Obviously, if one lives in a flood-prone area, one should certainly ensure that their home is protected against any flood-related damage; however, be aware that nearly all insurance policies specifically eliminate flood coverage from basic policies! To find out if you need flood insurance, heed the advice from top industry experts.

What is a Flood?

In determining whether or not you may need flood insurance, first be aware of what the exact technical definitions of a flood include. If you expect to experience any of the following hazards, then you may want to purchase flood insurance.

A flood is an uncommonly rapid accumulation of water. Accumulation of water can be caused by:

o    Runoff

o    Rain-related flood

o    Mud flows caused by flooding

o    Additional sources of excess water accumulation

Do You Need Flood Insurance?

In cases of excess rain fall, flash floods, or even a burst waterline near your home, flood insurance can provide you with incredible security and assurance. Yet, even if you feel your at risk of flood damage, your policy most likely does not provide basic coverage. In fact, even flood-prone areas, including beach homes and many houses in a probable hurricane zone, do not possess automatic protection against flooding. To help protect families from future flood-related disasters, insurance experts assert that individuals should contact a private insurance company that can specifically provide extensive flood coverage.

To accurately assess whether or not you need flood insurance, you can contact the Federal Emergency Management Agency (FEMA) to receive a flood insurance map, which provides a detailed community overview of your specific risks of flood damage. If you feel you are at a potential risk of flood damage, be aware that nearly 85 percent of all private insurance providers offer flood insurance coverage. In fact, these 85 percent also participate in the federal government’s National Flood Insurance Program.

The national program is designed to specifically protect homes that are damaged in a nationally proclaimed “Disaster Area.” For example, homes damaged in a hurricane’s wake that are later deemed as a national “Disaster Area” are subsequently provided with increased support and coverage. In order to receive these benefits, however, your community must be a participating National Flood Insurance member. To find out if your community participates in this program, check with your local town hall or government representative. Also, if your community is a member of the National Flood Insurance Program, be sure that you still take all of the necessary steps to ensure that your home is privately covered as well.

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