Insurance can be a confusing, somewhat mysterious thing to buy. It’s an expensive purchase, but often people don’t actually know what they are and are not paying for. Especially with lesser-known areas of insurance like flood insurance.
If you’ve never experienced in a flood and don’t live in a flood-prone area you might think you don’t need it. It sounds like an unnecessary cost. However, that’s when you’re the most vulnerable. An unexpected flood without insurance can be incredibly costly. Just 1 inch of flooding is said to cause up to $25,000 in damage.
What does flood insurance cover?
Essential systems of your home:
- Water Heaters
- Central Air Conditioning Units
- Heat pumps
- Sump pumps
- Fuel tanks
- Water tanks
- Solar energy equiptment
- washing machine
- drying machine
- Window air conditioning units (usually)
- the food in your fridge or freezer
- permanently installed carpeting
Personal property is only covered if it’s not stored in the basement. This includes
The Structure of the House
- Anchorage systems
So what’s not covered?
Basically, most things that weren’t left in places that are high risk are covered. However, there are a number of caveats and exceptions.
- Art and other luxuries are only insured up to $2,500.
- Damage caused by the earthmoving, even if the earth moved because of the flood it still won’t be covered.
- Damage caused by non-flood related water damage
- Mold/mildew damage
- Time lost
- Money lost for business having to close
- Anything stored outside the home
- Money, stock certificates, jewelry
So although there are some limitations, Flood insurance really covers quite a lot. It can cost as little as $700 a year to insure against a risk that can be incredibly costly.
If you need to insure your home contact us today.