When considering home and business insurance, one of the most important factors to consider is whether or not it covers your water damage. Water damage can be devastating and many homeowners find themselves hundreds of thousands of dollars in debt because they did not have coverage. In fact, if you have a major disaster such as a tornado or flood, your homeowner’s policy will cover the cost of rebuilding your property. Even if you do not suffer any financial losses from the flooding, you can be forced to replace items that have been damaged by water.
There are many different types of water damage coverage that your homeowner’s policy should provide for. The first type is called to clean up. This coverage will pay for the cost of removing debris and sewage from your building. This can include mopping away mold, cleaning bathrooms and putting out fires. The only downside to this type of damage is that if you are without electricity for a period of time, this type of coverage may not be able to be arranged.
Another type of coverage that will be included in your plan is termed replacement cost. This refers to covering the cost of replacing any non-life-sustaining appliances. Appliances such as washers and dryers can be extremely expensive to replace and should be covered in this portion of your plan. In addition, if you own or rent your home, your flood policy may also cover the cost of replacing carpets and other flooring that were damaged. Many people who live in rented homes do not want to think about the cost of carpet replacement, but it is very important to protect the floors of your home in case of a disaster.
Most flood policies will also include coverage for theft. This means that you can be covered if someone breaks into your house and takes anything that is not protected by your policy. This can include valuable jewelry or other items. Because this type of theft is on a per item basis, it will be priced similarly to other types of thefts.
The cost of your insurance policy will depend on the amount of coverage you select. The basic policy will provide coverage for flooding and theft, but you can add additional items to the policy at a nominal additional cost. If you have a lot of items in your house that are worth money such as a pool, a boat, or artwork, you might want to consider a policy that provides coverage for these things. If you do have a lot of items in this category, you should consider getting a policy that provides a lump sum payout should your possessions be destroyed. You should check with your agent to determine what types of policies are available.
Another aspect of insurance that is often overlooked is the element of liability. If someone gets hurt as a result of your water damage, your insurance company may be liable for the costs of their medical bills. This could be a particularly problematic scenario if you are the one causing the water damage. It is best to try and keep the number of people who have been injured as low as possible.
The cost of your home insurance policy will also depend on how extensive your coverage is. If you live in an area where floods are common, you should probably get more coverage than someone who lives in a region or state where damages are infrequent. If you are a property owner, you will be required to purchase flood insurance to protect your home against damage due to water. If the pipe breaks and causes flooding in your basement, you can get additional coverage to repair the pipes and dry out the basement.
When considering the purchase of home insurance, it is best to have a basic understanding of how much coverage you need. The cost of the premiums will be based on the risk level of your possessions being damaged. The more coverage you purchase, the higher your premiums will be. The cost of water damage policies is usually inexpensive enough that it is well worth it to purchase additional insurance coverage for this type of issue.