There are two aspects of homeowners insurance that are often overlooked: earthquake and flood insurance. These two policies can make a world of difference when it comes to insuring your home. It is important to note that these two policies are not included in standard homeowners insurance. Not every home is required to have these policies. Ultimately, it depends on the bank that your mortgage comes through. In order to better protect their investment, banks can require that you cover the home with either earthquake or flood insurance, and sometimes both. Some homes do not need either policy. For example, a home in the desert state of Nevada will not likely need flood insurance. It really just depends on the area you live in and the preferences of your bank.
Should your home need either type of these policies, there are a few things to know.
What Is Covered? Flood insurance will cover basically everything inside your home that is not supposed to come in contact with water. This includes the walls, foundation, electrical system, HVAC systems, kitchen appliances, carpeting, woodwork, and your water heater. Your insurance will pay for the removal of debris and the cost of what was lost.
What Isn't Covered? Flood insurance will not cover anything that comes in contact with water regularly, including landscaping, decks, patios, cars, fences, pools, hot tubs, or walkways. Homeowners should also take note that a few personal items that can be lost in a flood will also not be covered. These items are things that belong in a bank, including stocks and bonds, cash, precious metals, and certificates. Flood insurance also will not cover the loss of income that individuals may experience.
What Is Covered? An earthquake insurance policy covers your home, your property, and even additional expenses such as displacement costs. For example, cracks in the foundation because of the earthquake would be covered, your furniture would be covered, and if you needed to be in a hotel for a few weeks while you fixed up your house, that could be covered as well.
What Isn't Covered? Earthquakes can be devastating. This is because it is not just the shaking of the earth that causes problems, but the effects of the shaking. For example, earthquake insurance will not cover damage from a fire that started because of the quake. Also, things outside of your home will not be covered, such as your car or pool.
For more information on what insurance policies cover, contact a company like Philadelphia Contributionship.