Owners of properties are facing a dilemma as they find out the insurance coverage does not cover many types of property damages. When signing up with insurance companies, the owners agree to certain “exclusions” that are inserted as clauses in the contracts. When a situation occurs, they reject some of the claims and these results in less payout amounts.
Flood damage is different from wind damage
Many homeowners assume that the insurance policy that they sign up for covers their entire home and also the valuables in the home. They automatically feel that they can expect to be covered when certain problems arise due to “act of nature.” It therefore comes as a shock when they find out later that flood coverage is charged separately for damages caused due to floods.
Properties owners frustrated with charges are unable to understand why they cannot get covered when two events occur at the same time and cause damage to their house. For instance due to wind damage, the roof of the house may get ripped and due to the exposure, the house gets flooded and causes severe damage. The insurance companies refuse to cover both damages if the insurance policy covers just one of the damages and not both.
Read the latest updates and be aware of the types of clauses to include
Insurance policies have to be reviewed carefully and regularly. Property owners should be aware of the possible damages such as sump or pump failures, flooding or sewer backup that are the natural disasters that can occur when the place gets flooded. It is imperative to discuss these issues at length with the broker and include riders to ensure that they are protected and can seek coverage for damages.
Owners of properties should be well informed of the types of insurance coverage that can or cannot be included. By reading the news and keeping abreast of changes and updates, they should be knowledgeable to be able to demand their rights.
When reading the clauses, the property owner should be aware that some insurance companies offer to reimburse the actual cash value rather than the replacement cost. Check if they offer replacement costs which are more than the actual cash value. This should be available for not only the home but also the items of value that are in the house which includes heirlooms and electronics.
Hurricane coverage is different from flood coverage
There is a different insurance coverage for flooding which is different from that made out for hurricanes and unless owners are aware of this in the beginning, they find that they are unable to make claims later. Many of the property owners have had to face huge losses because of signing the exclusions and not reading and understanding the clauses.
It is always advisable to read the news and seek information on the net to learn more about insurance companies and how to get the best cover for any items that you hold valuable.Properties owners are advised to shop annually for policies and check out the price of taking flood insurance. Make sure to take the same well in advance as you require at least a month to get the insurance.