Blame it On The Rain: Protect Your Home With Hurricane, Wind and
Flood Insurance
Choosing the best insurance policies for your home can cause a
lot of confusion. Many homebuyers are not fully educated about
the coverage needed to protect a home or real estate investment.
Many difficult situations can be caused by natural disasters. If
you purchase real estate in or relocate to an area prone to
hurricanes or floods it is important to know you have sufficient
coverage. Read your policy carefully, ask questions and know the
facts. Consider all of the options and get the advice of a real
estate or insurance professional you can trust.
Come Rain Or Come Shine
Hurricane insurance is also referred to as Wind and Hail
insurance and it works to cover the cost of rebuilding your home
in the event of hurricane damages. Knowing the full extent of
your coverage is essential. First choose the best deductible.
Homeowners can purchase Wind and Hail insurance with a
deductible based on a percentage of damages that may occur. This
deductible will increase as the amount of damages increases. The
monthly payments are often lower, but the out-of-pocket expense
is higher. Homeowner's can also purchase hurricane insurance
with a fixed "all peril" deductible. This means whether you have
$2000 of damage or $50,000 you pay the same deductible. You may
pay a higher monthly payment, but in high-risk areas an "all
peril" deductible can save thousands of dollars.
You should also be certain your policy contains specific
coverage such as Loss of Use. This provides funds for you to
return to your home and it can even cover a dwelling on your
property while you reconstruct. The amount you are paid depends
the value of your home. Contents Replacement Cost is another
form of coverage that can be beneficial. It allows you to have
your items replaced at the current value. You can choose to
receive cash as well, but the cash value of the items is subject
to depreciation. A Living Expense Clause is another good option
for protection. It provides homeowners with an income while
recovering from hurricane damage and loss.
When The Waters Keep Rising Flood insurance and hurricane
insurance are separate policies. Flood insurance is a product of
the National Flood Insurance Program, which is part of FEMA.
Flood insurance cannot be paid by escrow it must be paid up
front by the insured. According to the official website of the
National Flood Insurance Program (NFIP), www.floodsmart.gov,
flood insurance covers "structural damage and
mechanicals...flood debris cleanup and floor surfaces like tile
and carpeting." You can purchase more coverage to insure
personal property, such as furniture and appliances. In order to
purchase a flood insurance policy homeowners and real estate
investors must own in a low-risk or high-risk community that
participates in the NFIP. There are three standard Flood
Insurance policy forms offered by the NFIP: the Dwelling Form,
the General Property Form and the Residential Condominium
Building Association Policy form. Each policy is based on how
the building is occupied.
When Disaster Strikes
If a natural disaster occurs in your region and many residents
suffer damage by wind or flood there are many options for
homeowners in financial trouble. The US Department of Housing
and Urban Development has a special insurance program that falls
under Section203(h) of the National Housing Act to assist
disaster victims. You can learn more about this program at
www.hud.gov. Lenders such as Freddie Mac and Taylor, Bean &
Whitaker also offer special programs to assist disaster victims.
Many lenders have encouraged mortgage brokers to suspend late
fees and delinquency penalties for hard hit coastal areas. They
have also enacted grace periods so homeowners can refrain from
making mortgage payments and avoid being reported to the Credit
Bureau. Also, many states have emergency management departments
that work with FEMA is situations like Hurricane Katrina. These
agencies, like the Virginia Department of Emergency Management,
can be of service to any homeowner in Virginia living in a
region declared a Major Disaster Area by the President of the
United States.
When you invest in real estate it is essential that you
understand the types of insurance coverage that will best
protect your property. Research your region and get advice from
the professionals. To learn more about homeowner's insurance
please visit www.vonncannonrealestate.com and read Dangerous
Liaisons: Tips For Securing Homeowner's Insurance.