When you insure your home, you’re receiving the peace of mind knowing that if a disaster were to happen, you won’t be left in a financial mess. However, will your homeowners insurance policy cover you in the event of a flood? What about if water seeps into your home or if your roof leaks?
Trusted Choice and the Big “I” conducted a survey and at least 28% of respondents agreed that they did not have enough savings to support their households for even one month after a disaster if forced to leave their home. You may be thinking, “Well I don’t live near any bodies of water where it would just flood.” However, 25% of all National Flood Insurance Program (NFIP) claims are reported outside high-risk flood areas.
What can you do to better prepare yourself in the event of a disaster? Start by understanding the homeowners insurance policy you may have in place now and what it actually covers. Do you have replacement cost coverage or actual cash value coverage? It is important to know the difference; replacement cost coverage will allow you to replace your lost possessions with brand new items whereas the actual cash value coverage takes into consideration deprecation of the items. Bill Brian Insurance Agency always recommends replacement cost coverage to avoid the risk of financial ruin. If you have actual cash value coverage, you may not be able to cover all of your losses.
Regardless of the type of coverage you have, it is essential to have an up-to-date home inventory that catalogues your valuables. Store your inventory away from your home so that when a disaster strikes, you’re able to provide the insurance company with a list of your possessions. This will speed up the claims process and help get you back to where you were before disaster struck.
Remember, homeowners insurance policies typically don’t cover flood damage. To protect yourself against flood damage, you can purchase a flood insurance policy. There is a 30-day waiting period so now would be the perfect time to secure coverage before winter comes.
40% of people surveyed don’t have or don’t know if they have coverage that will fully replace their belongings and home in the event of a disaster. Don’t be one of those 40%. Call Brill Brian Insurance Agency today for a no-obligation flood insurance quote and free education on how to reduce your flood risk.