When it comes to home insurance policies, flood damage and property damage coverage are normally a very expensive type of coverage. Most insurance companies do require you to carry at least the commercial building insurance required by your Arizona home owner’s policy. Flood damage is most often caused by water which originates in plumbing, including a backed up sewer, an overflowing washing machine, or a back-up flooding a hot tub or private swimming pool. If you have significant damage to your home or other property, you may be able to get additional coverage to help recover losses. The kind of damage covered will depend on the terms and conditions of your policy.
Most insurance companies will not pay to rebuild or repair properties that have been damaged by floods. However, there are several policies that do offer replacement cost coverage for flood damage. In these cases, after a certain amount of time, you will receive payments to repair or rebuild the property damaged by the flood. These payments are typically tax deductible, as long as you itemize all of your regular deductions. This is a good choice for individuals who want to cover the full cost of flood damage, but who don’t want to take out any additional insurance.
Most homeowner’s policies will not cover flood damage under standard building coverage, which means that you will need to buy a specialty policy to cover flood damage. You should look closely at whether your home is considered a special risk by your insurer. In some areas, buildings that are more prone to flooding are required to be constructed with additional features designed to prevent such disasters in the future. If you live in an area where homes and businesses are frequently threatened by severe weather events such as hurricanes, tornadoes, and earthquakes, it may make more economic sense to take out a policy that will cover flooding damage.
It is important to note that flood insurance coverage does not cover water damage occurring on the grounds of your home. If the water damage occurs on the outside of your home, you will need to purchase flood insurance to provide this type of insurance coverage. In many cases, the water damage occurs after the roof has already collapsed, which means that you will have to purchase separate homeowner’s insurance coverage to ensure that you have adequate coverage in place should water damage occur anywhere within your home.
Insurance prices vary significantly, so you should consider the amount of coverage and the risk factor associated with flood damage when looking for a policy that will fit your needs. If you live in an area that has high incidents of flooding, there is a good chance that your insurance premiums will be more expensive than if you live in a less risky area. Even if you do not need to file a claim, you may want to look into whether or not the damage to your property is covered. Most insurance companies will offer some form of liability protection in the event that a third party is harmed by the water caused by your flooding. This type of coverage is not mandatory, but it can be beneficial in the event that you need to file a claim in the future.
It is imperative that you carefully review your homeowner’s policy to understand what is not covered. You may discover that you are not protected against all forms of damage that flood damage insurance will cover. For example, mold damage is not covered under most policies. However, if you have a very mold infested home, then it may be worth it to purchase a policy that includes this coverage. Some policies include only a few different types of mold, while others include protection from all types. This is a good thing to check out before purchasing flood damage insurance, as it can save you a lot of money down the road.
