What is Flood Insurance?
Flooding is usually caused by the rising of water in lakes, rivers and streams. Hurricanes can bring devastating floods in seafront and oceanfront locations. Heavy rainfall can make narrow streams overflow and flood entire neighborhoods. Property damage that’s caused by all of these weather-related incidents can be covered with flooding insurance.
Who it is For
Anyone who owns residential or commercial real estate may purchase flood insurance. This type of policy applies to homes, condominiums, apartments and townhouses. Offices and other buildings that are utilized primarily for business could also be covered.
How it Works
After an insured property gets flooded, the owner needs to file a claim with a certain time period. Depending on the nature of the devastation, there may be a time frame of several months to officially make a claim. An insurance company then sends professional appraisers and inspectors who assess the extent of the damage to a home or building. The assessment ultimately yields in a check that’s used to make repairs, restorations and remodeling.
Different Types of Coverage in Existence
Insurance for flooding is primarily devised to cover the costs of pumping out water from areas that have been submerged partially or fully. Furthermore, money is given to fix structural problems that have occurred as a direct result from contact with water. Cleaning water stains and removing mold is another common procedure that’s typically covered in an insurance against floods. If soaked by water and damaged, personal belongings such as furniture and electronics can be replaced with new ones. Protection can also extend into detachable structures on a property including sheds, garages, barns, pods and gazebos. The overflow of septic tanks, swimming pools and private wells could be included as a reason for flooding.
When having insurance, people who live in flood-prone areas can have peace of mind throughout the year. There’s no need to dip into personal assets and other reserves to pay for expensive repairs caused by uncontrollable flow of water. Properties that are insured against flooding tend to retain their resale value well when placed on the real estate market.