The Difference Between Home Insurance And Flood Insurance

Buying a home is one of the most significant purchases you will ever make in your life. Your home is meant not just to provide shelter and comfort to its occupants, but it’s also an asset.

From the financial perspective, a residential property is a worthwhile investment for many Americans. Just like any other other investment, a home is exposed to different types of risks, such as security threats, environmental dangers, natural disasters, and so on.  

These risks can cause extensive physical damage to your residence. In order to protect their residential properties from unforeseen events, homeowners need homeowners insurance.

Homeowners insurance: Types of damages covered

Although homeowners insurance is typically designed to cover a variety of possible damages, each insurance policy is different. Homeowners must carefully understand the type of coverage they are getting before signing an insurance policy.

A standard insurance policy includes coverage for physical damage to a home, its permanent structures (garage, driveway, etc.), and personal possessions on account of fire, smoke, wind, lighting, theft or vandalism.

Personal belongings generally include furniture, clothes, electronics, and more. In addition, some homeowners’ insurance policies provide coverage for losses to expensive items, such as jewelry, artwork, watches, and more.

However, if your home has been damaged or destroyed due to flooding, this will not be covered by homeowners insurance.

Flood insurance: What’s covered?

The National Flood Insurance Program provides was established to provide flood insurance to risk-prone communities.  The organization covers about 5.1 million properties worth more than $1.25 trillion collectively. Communities need to register with the National Flood Insurance Program to qualify for flood insurance. Once registered, the residents of that community can purchase flood insurance coverage at affordable rates through the National Flood Insurance Program.

Generally speaking, a standard flood insurance policy covers damages to a home and its structures, personal belongings, plumbing, electrical equipment, kitchen appliances, carpeting, and more. However, you shouldn’t expect coverage for cash, car, stocks, bonds or similar assets.

Despite the serious risk of flooding, only 12% homeowners maintained a flood insurance policy in 2016, which was lower than 14% who had the coverage in 2015.

Flooding is one of the most common natural catastrophes and can affect any state. This is particularly true for Florida due to its close proximity to water, both inland and on the coast. According to the National Flood Insurance Program, an inch of water can cause losses worth more than $20,000.

If you live in a flood zone, flood insurance policy is one way of preparing for the natural disaster. It takes almost a month for flood insurance to take effect. The sooner you buy the policy, the better.

A mortgage broker can help you obtain comprehensive coverage for both flood insurance and home insurance. At Manatee Insurance Services, Inc., our trained, experienced broker can help you find the best possible homeowners and flood insurance coverage for your home.

Call us now 941-747-7283 to connect with the most reliable insurance companies in Bradenton, FL.

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