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Flood Insurance

The dangers that Mother Nature can inflict on a home or building owner include floods that can severely damage a structure or often times destroy it. While physical things can be done to try and blunt any damage that occurs, the concept of flood insurance is definitely an investment to consider for the most vulnerable in this segment of the real estate market.

Defining this level of insurance basically comes down to coverage for any damage to someone’s property or possessions as a result of flooding. This includes not only the home or building itself, but integral parts of a home like appliances, carpeting or flooring and any debris removal that must be done. Since these are two separate policies, it’s recommended that both be purchased.

Other areas that can also be insured include adjacent property to a home or business, liability coverage if someone is sued for suffering an injury on the property, and living expenses in the event that damage from the flood has made the home uninhabitable.

It’s important to remember that the standard homeowner insurance policy doesn’t cover damage from floods. Those who live in a flood zone that’s considered high-risk are actually required to purchase this insurance, while those in moderate-to-low risk areas have the option of purchasing it.

In the latter case, awareness should be made of the fact that 20 percent of claims in this area come from moderate-to-low areas, so those areas aren’t immune. All homeowners should have a home inventory available to make sure that they can properly calculate how much coverage they need.

The fact that the average claim for a flood victim hovers around $30,000 is one reason why this investment is often strongly recommended, regardless of the surroundings. The average person most likely can’t cover such an amount, which saddles them with a tremendous financial burden.

Therefore, purchasing flood insurance can offer peace of mind to either a homeowner or business, allowing them to live their life knowing that even if a catastrophe takes place, they won’t be financially devastated.