Flood Insurance Policies
While cities like Albuquerque are not as likely or may not even need it, coastal towns certainly do. Flood insurance is essential to protect your belongings should water damage occur. Desert cities and other locations that are not prone to any type of flooding aren’t the best candidates. Places like Florida, California and any area near water or that has experienced previous flooding should opt for this insurance. In fact, homes and businesses in high-risk flood areas are legally required to have it. Those in moderate-to-low risk areas may opt for it, as it is available, but are not required to purchase it.
In basic terms, flood insurance covers physical damage to both possessions and property caused by a flood. Property, in the legal sense, includes foundation, plumbing systems, personal items, debris removal, carpeting and built-in appliances. It does not cover moisture damage that could have been avoided, currency, property outside of the building, living expenses for temporary housing and car, among other things. Keep in mind that each policy is slightly different so be sure to read everything to know what is and is not covered.
At the current time, there are three types of policies available. Homeowners, renters, condo and renters. Underneath each of them are high-risk policies and moderate-to-low risk. The high risks are far more versatile and are calculated based on a number of factors including flood risk, location, building occupancy and year of construction.
This type of insurance is very important for those in high-risk areas. Floods can be unpredictable and strike without a moment’s notice, leaving you and your family without a home and without all the things you worked so hard to earn. By having a policy, this event does not have to be so devastating. Instead of having to foot the entire bill yourself, relief is provided, helping you cover everything that was lost or destroyed. It is a mean by which you can protect you and your family from a future disaster.
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