Article by Roy Primm
What do you mean I'm not covered for flood damage? Unfortunately that's what millions of homeowners are saying each year with shock and sometimes horror.
Of course they never thought it could happen to them, after all they don't live in a flood zone. But nevertheless they experienced a record rain storm, sewage backup or county flood control failure.?
The good news was know one was injured, the bad news is they didn't purchase the right flood insurance policy or worse - they had no policy at all.To help you avoid this fate, here's the top 10 mistakes most people make when it comes to buying flood damage insurance.
1. Assuming you need to live near a large body of water, a flood zone or low lying areas to benefit from flood insurances.Most floods are caused by several different causes aside from living near a large body of water. For example, rain, snow or ice storms, hurricanes, and water or sewage backup, in addition to dam or other flood control failure and more.
?2. Assuming your standard home insurance policy covers flood damage.This is one of the biggest reasons why it's so important to stay educated and up-to-date on insurance matters. Why? Because most people assume they're covered by flood or water damage in their standard insurance policy. Surprise! You're not.
The fact is most standard policies don't cover flood or most water damage. For this you'll need a separate policy or rider.
3. Assuming you can't buy flood insurance if you've been turned down by traditional insurance companies. You can buy flood insurance as long as your community participates in the National Flood Insurance Program.
4. Assuming all flood insurance is too expensive.The average flood insurance policy costs as little as 3 a year for coverage.
?5. Assuming Federal Disaster Assistance will pay for flood damages.Federal disaster assistance doesn't pay for flood damages. At best it can help to provide low interest loans if you qualify - and only if the President declares the area you live in a disaster.?
6. Assuming you don't need flood insurance if you live in a low to moderate risk area. Almost 25 percent of all flood insurance claims come from areas with low-to-moderate flood risk.
7. Assuming you must purchase a full flood insurance policy.You may qualify for the Preferred Risk Policy (a lower-cost flood insurance policy) that provides contents coverage beginning at per year.8. Not finding out what's covered by Replacement Cost and what's covered by Actual Cash Value?It's important to find this out to make the best informed decision of? what kind of policy to purchase and who to purchase it from.
9. Assuming you're covered from flood damage if you rent.Your landlords policy only insures the building not your personal property. However, you can purchase an insurance policy for your personal possessions.
10. Taking The First Policy You Come Across.The best method of buying the most coverage for the best price is to comparison shop at least three different companies. You may be surprised at the price and/or service difference. By taking the time to follow and remember these 10 guidelines you'll avoid the mistakes many people make when buying flood damage insurance.
About the Author
Roy Primm has written dozens of articles showing others how to reduce your home ownership cost. For more tips go to HomeInsuranceAdvice.net
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