FRIDAY, FEBRUARY 27, 2015
We do live in an area that floods.
"What does flood insurance cost?"
Your home insurance does not cover flood damage so you will need to purchase a separate flood insurance policy to cover flood damage.
I often get asked "Do I need flood insurance?".
We live in a coastal state and it does flood in our area. Flood damage is one of the worst damage I see because the water is usually filled with bacteria. The water is coming from the outside so it is mixed with dirt or sewage if the sewers overflow. That kind of water damage cannot simply be wet vacuumed out. It usually needs to be properly removed and replaced with new material. Thus the high cost of flood damage. Plus everyone has AC units that sit at ground level prone to flood damage. A ac unit can cost $10,000 based on size so at a minimum you may want to insure those. The flood insurance premiums are low not more than $1/day in some cases and the deductible is 1,000 so your policy will pay all damage above 1,000.
First, What does flood insurance cover?
Flood insurance policies cover physical damage to your property and possessions from external rising water as summarized below.
- The insured building and its foundation
- Electrical and plumbing systems
- Central air conditioning equipment, furnaces and water heaters
- Refrigerators, cooking stoves and built-in appliances such as dishwashers
- Permanently installed carpeting over unfinished flooring
- Permanently installed paneling, wallboard, bookcases and cabinets
- Window blinds
- Detached garages (up to 10 percent of building property coverage); detached buildings (other than garages) require a separate building property policy
- Debris removal
- Personal belongings, such as clothing, furniture and electronic equipment
- Portable and window air conditioners
- Portable microwave ovens and portable dishwashers
- Carpets that are not included in building coverage
- Clothing washers and dryers
- Food freezers and the food in them
- Certain valuable items such as original artwork and furs (up to $2,500)
- Damage caused by moisture, mildew or mold that could have been avoided by the property owner
- Currency, precious metals and valuable papers such as stock certificates
- Property and belongings outside of an insured building such as trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs and swimming pools
- Living expenses such as temporary housing
- Financial losses caused by business interruption or loss of use of insured property
- Most self-propelled vehicles such as cars, including their parts (see Section IV.5 in your policy)
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