You were woken up at midnight by the sound of a hailstorm that smashing on your windows, followed. Before you knew it, your home was covered by water that was harmful. Will your insurance policy cover this loss? This will depend on the type of insurance how the water got into your home, and you decided to purchase.
There are essentially two policies that manage damage to your home – a flood insurance along with a homeowners insurance policy. Losses not covered by one of these might be provided for by another. Planning can help you understand the reductions to which your home could be exposed to decide whether to purchase both or one of these policies.
Insurance cover varies in the coverage they provide from 1 homeowner. However, there are basic features. You should talk to your insurance agent.
FLOOD WATER INSURANCE
A flood is an excess of water (or sand ) on land that is normally dry. The National Flood Insurance Program (NFIP) defines flood to be a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area, or two or more properties (at least among which is the policyholder’s property) from:
The overflow of inland or tidal waters;
Unusual and rapid accumulation or runoff of surface waters from any source;
Mudflow; or Collapse or subsidence of land along the shore of a lake or similar body of water because of undermining or erosion, caused by waves or currents of water exceeding anticipated cyclical levels.
Flood Insurance is a cover that is federally backed by the NFIP and available for homeowners, renters, and businesses. A normal policy pays for direct physical damage to your insured property as much as the replacement cost or actual cash value (ACV) of actual damages or the policy limit of liability, whichever is less. Generally, damage caused by water that has been on the floor at some stage before damaging your home is considered to be flood damage. Few examples of flood damage include:
A river overflows its banks and flows.
Rain seeps into your basement because the soil can’t absorb the water quickly enough
A rain or flash flood causes the hill behind your house to collapse.
Flood damage to your home can be ensured only with a flood insurance policy cover — no other insurance will cover this damage. This type is available through your insurance agent, insurance company or local Federal Emergency Management Office (FEMA). To determine if your home is located in a floodplain, contact your county planning office. Flood insurance may be a superb purchase if you’re living in a floodplain.
A home insurance policy does not provide coverage for flood damage. It provides coverage for several kinds of water damage to your home. When water damages your home before the water comes in contact with the floor, just the opposite from flood damage, for insurance purposes, water damage is considered to occur. A few examples of water damage include:
A hailstorm that divides on your window, allowing hail and rain-free access.
Rain soaks allowing water to trickle through the ceiling or your attic.
A water pipe spews water to your home.
Even if your homeowner’s insurance coverage does not cover flood or water damage, losses from theft, fire or explosion resulting from water damage are covered. For example, if the local creek flooding and overflows your home, after you evacuate and looters steal some of your furnishings, the theft would be covered by your homeowner’s insurance as it is a direct result of the water damage. However, the flood damage would be covered if you have flood insurance.
Flood Insurance is usually marketed and serviced by insurance providers, and backed by the Federal Government. More than 80 insurance companies sell flood insurance. In most cases can help you.
Decide which and then It’s up to you to talk to your insurance agent about homeowners insurance and flood insurance coverage you need to protect your home, its contents, and your loved ones.