Homeowners Insurance Lowdown

It was reported that more than 28,000 flood-insurance claims were made during the 2004 hurricane season. Around $1.4 billion were paid to the claimants. As floods have been more frequent in the United States in the past few years, homeowners should think about it seriously. Many homeowners do not carry separate flood insurance as they think that it is covered under their homeowner policy. But such misconception arises, as they do not read their policies carefully.

Homeowner insurance only covers win-blown rain or water damage caused by plumbing malfunctions. They should read the term and conditions mentioned in the homeowners insurance policy to avoid any confusion. Homeowners can take the benefits of flood insurance even though they have homeowners insurance policy. investors.com reports:

Many homeowners also mistakenly believe that flood damage will be covered by federal disaster assistance, but these monies normally take the form of loans (not grants) and are only available if the president formally declares a disaster. Less than 10% of all weather emergencies in the U.S. are declared federal disasters.

Read More: What all homeowners need to know about flood insurance

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