Understanding which insurance policy provides which coverage can be confusing. During hurricane season, it’s important for homeowners to evaluate their policies and understand the various types of coverage on their side.
Does my home insurance have any coverage for flood damage?
Many people assume that if they have home insurance their home is covered. There are exclusions and gaps in coverage, however, which may leave homeowners vulnerable to particular perils. Flooding is one of those perils.
A standard homeowners insurance policy does not cover flood damage. Home owners in high risk flood zones may be required by their mortgage company to purchase a flood insurance policy. Home owners in moderate- to low-risk areas can also consider flood insurance protection, typically for a much lower premium. Note that flood policies do not cover all types of flood damage.
For flooding caused by sewage backups, a supplemental policy on homeowners coverage will provide protection. A sewage backup rider with up to $10,000 in coverage is typically between $75 and $150 per year, according to Alice Holbrook.
Do I need flood insurance if I am renting?
While a landlord would be responsible for the building coverage, the personal contents inside the apartment would be the renter’s responsibility.
Flood insurance for contents coverage is available for renters to protect personal belongings.
Do I have coverage for flood damage to my vehicle?
The comprehensive coverage on a standard auto insurance policy would cover damages by flooding. Note that once water gets into the vehicle’s dash, it’s likely to be totaled, according to an article by IndeOnline.
How do I know if I have the right coverage for my flood risk?
Stay up-to-date with flood risk maps in your community. Take the proper precautions if a big storm is headed towards your home. It’s also important to review your insurance policies with an agent annually to ensure that your coverage is enough.