When applying for your home insurance policy, chances are that your insurance agent is going to ask you about flood insurance. You may not be sure if a flood insurance is right for you because you do not know much about what it covers. Here are some common questions about flood insurance coverage you'll want to be answered before you decide to get a policy.
Know What Defines A Flood
One thing to keep in mind about flood insurance is what your insurance provider defines as a flood. What you may call a flood may or may not be covered by flood insurance. For example, if your sewer line backs up and ends up flooding your basement with water, this is not actually a flood that would be covered with flood insurance. You would need a sewage backup policy to ensure that you have coverage for this type of disaster. Meanwhile, a pipe burst that causes water to flood your basement will likely already be covered by your basic home insurance policy, and flood insurance will not be necessary to cover the damage.
Know How Water Must Enter Your Home
What flood insurance will cover is if any damage is caused by water entering your home due to forces of nature. For example, if a nearby river overflows and water starts coming down your street and entering your home, this would be covered by flood insurance. If you have a torrential downpour that causes rainwater to rise from the street level and enter your home through a basement window, you would also have coverage with flood insurance
Understand Coverage Limitations
Make sure you check the policy to understand what types of damage is covered under a flood insurance policy. It may be all-encompassing up to a certain dollar amount worth of damage, or it may require an additional policy for certain personal property that is damaged.
For example, it is common for flood insurance to cover all of the damage caused to the structure of your home, including the cleanup process. There should also be coverage for essential personal property in the home, such as your furnace and other appliances. However, you may need to purchase additional coverage if you want certain personal property in your basement to be covered. If you have a home office in your basement, this may be necessary to cover a computer or television.
Make sure you talk to an insurance agency, such as Jeffrey Beck Insurance Services, to fully understand more about flood insurance.