There are a lot of circumstances that can cause floods, including heavy typhoons, melting snow, broken dams, heavy rainfall, tsunamis, and others. In this article, you may learn something new about flood insurance.
Flood insurance protects you from losses incurred as a result of floods. A flood is classified as a significant catastrophic event in many places, and the loss or destruction it causes is not covered unless you have insurance. The value of Flood Insurance may depend on the age, height, number of stories, and the city in which it is located.
How Does Flood Insurance Work?
Flood insurance works similarly to other insurance products. The insured home or private landowner usually pays a premium depending on the flood damage of the property and the deductible they select.
Suppose flooding affects or destroys the property or its contents due to an external calamity such as heavy rain, snow, storms, falls, or failing infrastructure. In that case, the owner receives compensation for the cost of repairing the damage and rebuilding the structure, according to the allowed limits.
What it Doesn’t Cover
It is also important to know what is not covered by flood insurance. Here are some instances of equipment and expenditures that are not covered by a typical flood insurance policy:
- The moisture or mold cavity damage that the homeowner could have resolved.
- Expenses affected as a result of a business disruption.
- Extended housing costs, such as temporary accommodation while the facility is restored or unavailable for occupancy.
A natural disaster cannot be avoided, but with the help of knowledge, it's also important to understand that a flood isn't the only cause of water problems in a home. As a result, you should assess the coverages provided by your insurance policy and know the potential benefits of flood insurance.
At Brad Spurgeon Insurance Agency Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (409) 945-4746. You can also request a free quote by CLICKING HERE. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.