Imagine coming home from a long day at work to see that your carpet is completely soaked and your home reeks of sewage. It can happen and has for many of homeowners. Do you know what your next step would be or an even better question is, would you have adequate coverage for the damage that has just been caused to your home? The cost of ensuring that you have protection against such a loss is minimal in comparison to the peace of mind you will gain from knowing that you are covered if such an event arises. Water damage can happen in the blink of an eye, and most times cannot be prevented. Make sure that you are prepared for the unexpected.
For many homeowners the answer to that question is no, unfortunately many people do not carry what is known as Water Back Up and Sump Overflow Coverage. Water Back up and Sump Overflow is an endorsement that can be added to your policy to protect you from loss resulting from water which backs up through sewers or drains or which overflows from the sump. Most companies offer $5k in liability coverage and the estimated premium for adding this coverage is $25 for the year.
Most people fee l that if they have a newer home that this coverage is not needed but that is not the case as water damage can happen anytime. Water pressure in pipes, a clogged septic tank or just a loose screw can cause water to backup into your home.Continue Reading
On July 16, 2012 changes were made to The National Flood Insurance Program (NFIP) that required the Federal Emergency Management Agency (FEMA) to remove subsidies on flood policies, which resulted in rate increases for thousands of homeowners who were required to carry flood insurance.
Luckily for those homeowners the rate increases were not implemented thanks to the bill, H.R. 3370, that was passed by Congress known as the Homeowner Flood Insurance Affordability Act of 2014. This bill delayed the implementation of the rate increases of flood premiums for four years.
If you are a homeowner who is fortunate enough to live in a “Preferred Flood Zone”, flood insurance is not required, so not to worry. However purchasing flood insurance is something you should still consider because every home has the potential of experiencing a flood and that flood resulting in damage.
Others however are not so fortunate and flood insurance is required. Flood premiums have to be paid in full at the renewal of each policy.
If you are required to carry flood insurance remember that in order to get the best rate, an Elevation Certificate is recommended. This certificate allows the NFIP to provide you with the most accurate rate. Failure to secure an elevation certificate could result in the highest premium as premiums typically have to be manually rated.
Flood insurance serves many purposes. What most don’t know is that flood insurance covers for more than just water damage due to a flood. Coverage goes beyond water damage but includes hurricanes, tornadoes, flooding, droughts, ice storms, earthquakes, wildfires, and tropical storms. Any of these perils could occur as Mother Nature is unpredictable.
If you are wondering whether or not you should purchase flood insurance, or if you have questions on your existing flood policy do not hesitate to give your agent a call.Continue Reading