Flood Insurance Policies
Statistics show that a surprisingly large number of people in the country live in flood zones. Almost a fourth of those households do not carry flood insurance. This is a surprising statistic because the government states that it is mandatory for those individuals to carry flood insurance. This type of insurance helps to lower the risks that they might carry due to a sudden flood. Certainly, the insurance has numerous advantages and disadvantages. Let's take a closer look at the insurance.
How It Works
The insurance is used to cover losses that are due to a flood. This might be flooding due to severe weather or other major catastrophes. This coverage is primarily for those in a designated flood zone. Otherwise, complications might arise. The policy holder generally has to wait approximately 30 days for their new policy to take effect and the new policy is backed by FEMA.
There are two types of insurance for the home-owner to consider. Of course, the consumer is free to select the type of policy that they think covers their requirements. The basic insurance policy does just that. The basic policy covers the dwelling and any type of damage to the dwelling. For example, the interior walls, exteriors walls, permanently installed fixture, electrical system, plumbing system, and the roof. Another type of policy covers more than structural damage to the home. This type of policy would cover damage to personal property due to a flood. For example, clothing, furniture, electronics, appliances, rugs, and carpets.
The standard home insurance policy does not cover floods. This type of insurance policy helps to lower the risk involved with everything from a minor leak to a major flood. Residential properties and every business in a flood zone would quickly lower their risk by purchasing this type of insurance.
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