subject: Know About Fire And Flood Insurance Policies Before Signing A Contract [print this page] Homeowners are often insured through homeowner's insurance but not everyone who owns a home is insured with fire and flood insurance. Fire and flood insurance covers specific damages from unforeseen occurrences which most often are a result of nature or disasters. Many homeowners make the mistake of thinking that their standard homeowner's insurance covers damages which are not actually listed in their policies. This can result in being unprepared and financially unable to recover from natural disasters, heavy storm damage, fires, and more.
In many homeowners' insurance policies, water damage is listed. Some homeowners believe that this covers all water damage of any kind. Sadly, this is rarely the case. It is typical for water damage from a leaking pipe or basement water damage to be covered as these are common incidents which occur within a home. However, if a nearby river floods or if you live near a levy or dam which overflows and your house is damaged by this type of water, it is highly likely that your standard homeowner's insurance policy will not cover these damages.
Water damage from rivers overflowing and from hurricanes, heavy rains and other storms are considered natural damages or storm damages. Many insurance companies insist that you have a separate policy which is often considered a fire and flood policy in order for your property to be covered if these damages do occur. Recovering from water damage can financially drain a family's income. Water damage can cause mold and other harmful elements to reside and grow in your home, especially heavy water damages from storms or natural elements. Be sure to thoroughly inspect your homeowner's insurance policy to see if this type of water damage is covered in your policy. If it is not, you will want to consider investing in fire and flood insurance to ensure that your family and your home are protected.
Fire damage is very similar to flood and water damage when it comes to homeowner's insurance policies. There are several homeowner policies which cover a minimum amount of fire damage, but have limitations and restrictions regarding the amount of damage and the cause of the fire. Major storms such as tornados can cause fires in homes by disrupting gas lines and major electrical lines. It is generally standard that the homeowner will need to have fire and flood damage to be protected against fire damage resulting from a storm.
Small fires resulting from house candles, chimney fires, and small electrical fires are typically covered within a homeowner's insurance policy. Because of this, many people make the grave mistake of assuming that they are covered for any type of fire damage. It is important to review your homeowner's insurance policy to see if you are covered for explosions and fire damage resulting from natural disasters and mother earth.
Being prepared is the best way to secure your family's future and stability. Being left underinsured can potentially threaten the security your family has.
