What does Flood Insurance Cover that my Homeowners Does Not?

Your homeowner’s insurance policy has limited coverage, especially when it comes to flooding. In fact, all homeowners insurance policies come with zero coverage for flood damage, which is why anyone who needs this type of insurance can purchase it separately. The good news though is that when purchased through a regular commercial agent, flood insurance policies are guaranteed by the federal government.

NY Flood Insurance

NY Flood Insurance

Water Damage

There are many types of damages that a homeowner’s insurance policy covers. For instance, in the event, one or more of your pipes burst and your house is flooded, the policy will most likely cover you. If your roof is damaged and the rain can come through it and into your home, then your homeowner’s insurance has you covered. However, if you’re negligent and you have a specific problem with your home that you didn’t want to fix, then the policy doesn’t cover you. Also, if a pipe breaks or a roof leaks as a result of deterioration or age, the policy will cover the costs of replacing your property’s contents, but it won’t pay to repair the pipe or the roof. Each policy will read differently so make sure you check with your agent to check on your specific coverage.

Flood Damage

If your property is flooded by water coming at you over the ground, then your flood insurance policy will cover the damages. Like a homeowner’s insurance policy, this type of insurance can cover both your possessions and your house. However, there are quite a few exceptions to consider: this type of insurance won’t cover valuable papers or destroyed money. If your home has a basement, then the policy offers limited coverage for personal property.

Pricing Homeowners

The cost of homeowners insurance is influenced by a lot of factors, including the value of your possessions and your property. If your home is new and excellently maintained, then you can easily get a very low rate for your insurance policy. On the other hand, if you have a history of claims, then this can make it hard to insure your home and even if you can insure it, the rates will be high. To further lower your insurance premium, you may also want to ensure there’s a fire hydrant nearby and that you install a home alarm system.

Flood Insurance Costs

It’s important to bear in mind that flood insurance rates are rigid and since they just cover the risk of flooding, this directly impacts the rates. So if you’re in a high-risk zone and want 150 thousand dollars in building coverage and 50 thousand dollars of content coverage, you’ll need to pay a premium of 1844 dollars. There are other factors that influence your premium, such as whether your local government actively tries to lower the risks of flood damage, the age of your home and if you have an elevation certificate for your home so make sure you speak with a local agent like us here at Coastal Insurance Solutions.

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