Is Your Home Insurance Policy Up to Date?

Many homeowners do not know what is covered by their insurance company until they need to file a claim.  Property damages done by a pipe bursting is covered by most insurances, groundwater damage may not be.

For many homeowners, damages done to the roof and basement of the home may not be covered by their insurance company, and they find out their deductible has to kick in before the company makes any payment to cover the damages.

Ask yourself these three questions about your home insurance policy and see if you know the answer without looking at your policy.

  1. Does my insurance company cover groundwater damage? Most insurance companies will cover damages done to the dwelling of your home if the water damage was sudden and accidental. If the groundwater damage was due to the aging of the home, most insurances companies won’t cover it. You must purchase a different kind of coverage with your standard policy to cover any damage done to the property due to groundwater damage.
  2. If my sewer backs up, is that covered? Most insurances policies won’t cover sewer backups, but once again you can purchase additional insurance to cover these eventualities.
  3. Is flooding covered by my insurance policy?  Most companies won’t cover flooding with your regular policy, but through the federal government, you can purchase flood insurance coverage that will protect you against such disasters.   

Most disasters related to flooding come unexpectedly and many homeowners are not prepared.  Personal belongings, appliances or other types of electronics stored in the basement can be lost in a blink of an eye and can cost you thousands of dollars to replace.  The structural damage done to the basement can cost you much more than a few thousand and can put a strain on your finances if not covered by insurance.

Now that you know the type of policy you have, you need to take these three steps to ensure your property is safe and will be safe in the future.

  1. Call your insurance agent and ask whether you can purchase flood insurance through them.
  2. Shop around to see if your agent is giving you the best option. Check the United States Government website concerning flood insurance. https://www.floodsmart.gov/ and make a decision to purchase it as soon as you can.
  3. Make sure to inspect your basement, foundation, and roof for any signs of damage.

Many disasters occur when we least expect them, and even when we want to be prepared, it is impossible to predict when we will suffer one devastating disaster.  What can we do to protect ourselves from such eventuality? The best advice is to buy the right insurance coverage to protect your assets and your families as soon as possible.