Posted by Mary Lou Buckley on 8/5/2018

Flood insurance represents a valuable investment for many homeowners across the country, and for good reason. This type of insurance guarantees that your residence and personal belongings are protected against flooding due to a severe rain storm or other inclement weather. Therefore, purchasing flood insurance may enable you to avoid substantial losses due to flood damage associated with a natural disaster.

So how does flood insurance work exactly? Here are three things that every homeowner needs to know about flood insurance.

1. Flood insurance and homeowners insurance are very different.

Flood insurance serves as a supplemental insurance that can be purchased in addition to your homeowners coverage. However, flood insurance does not substitute for home insurance, and vice-versa.

Typically, a homeowners policy does not offer flood coverage. This means if your house is filled with water due to a natural disaster, your homeowners coverage will not protect you against property damage or losses.

In many cases, a bank or credit may require a homeowner to purchase flood insurance if he or she owns a house that is located in a floodplain. Conversely, you may want to consider purchasing flood insurance even if live outside a floodplain.

Remember, even 1 inch of water after a flood can cause major damage in your home. But if you have flood insurance in place, your home and belongings will be protected against flooding at all times.

2. Flood insurance is provided via the National Flood Insurance Program (NFIP).

The NFIP offers flood insurance policies for your home and possessions. A flood insurance policy for your home guarantees that you're protected against any flood damage to your residence. Meanwhile, contents coverage insures you against loss of possessions due to flooding.

Also, it is important to note that flood insurance policies usually require at least 30 days before they go into effect. This means that you likely won't be able to purchase flood insurance only days before a major hurricane is expected to arrive in your city or town.

3. Flood insurance won't necessarily cover your entire home.

Federal flood insurance commonly offers coverage worth up to $250,000 for your home and $100,000 for your belongings. Therefore, if you own a home that is worth $300,000 and it is destroyed in a flood, your flood insurance policy will not cover the entire cost to replace your residence.

Comparatively, you can purchase "excess flood insurance" through a private insurance company to supplement a federal flood insurance policy. Excess flood insurance offers a great option if you want to insure your home and possessions against floods and guarantee that any policy claims are covered beyond national limits.

4. Floodplains may change over time.

Floodplain maps frequently change and evolve over time. Thus, a residence that was not in a floodplain several years ago may now be located in a floodplain.

If you plan to sell your residence, your real estate agent can help you find out if it is located in a floodplain. Or, if you intend to buy a new home, your real estate agent can tell you whether a residence is located in a floodplain as well.




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Posted by Mary Lou Buckley on 4/22/2018

Home renovations are generally thought of as a good thing. You can update your home for your own comfort. New amenities will make your life easier. Your home can expand in size. Whatever you are planning to do in your home is bound to have a positive affect. One thing to be aware of when you’re gearing up for the process of any type of home renovation is that of your home insurance. You want to protect yourself and your home as your go through the stages of home renovations. Below, you’ll find some tips to help you complete renovations you desire in your home without having surprise insurance bills. 


Check That Your Contractor Has Insurance Coverage


Before you sign a contract with any contractor be sure that they have sufficient insurance coverage. In particular you want to be sure that they have workers‘ compensation coverage and liability insurance. Don’t be afraid to ask the contractor for the necessary certificates and confirmation of insurance coverage before you even sign the contract. It’s your right as a consumer to know that your contractor is covered properly.


Beware Of Subcontractors As Well


Just because your general contractor is covered doesn’t mean that all subcontractors that are hired have the correct insurance. Electricians, plumbers, and other specialty contractors will need their own insurance on the job. The same rules apply as when you’re hiring any other contractor. Check with the general contractor to understand if their policy will cover all workers that are hired, or if these individuals need to carry their own insurance policies. Check with your home insurance company to see what your home insurance does and doesn’t cover during a renovation period on your home. The more knowledge that you have going into the process, the better it is for you. 


For Your Homeowner’s Insurance Policy


Once the renovations are complete, you’ll need to reassess the policy coverage amounts that you have for your home insurance policy. The renovations that you have completed will undoubtedly increase the value of your home causing you to need to increase the replacement value of your home on your insurance policy. Don’t forget to include everything from new appliances to furniture that has been replaced in the renovation. This will help you to avoid any gaps in coverage. This way, you’ll know that your home will be fully covered. With the right insurance coverage you’ll know that your home is can be rebuilt to the same specifications in the event of a complete loss. You always want this peace of mind as a homeowner.      





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