Earthquake and Flood Insurance

Are you covered in case of an earthquake?

Earthquakes can cause devastating damage, and they’re usually not covered in a Standard Homeowners insurance policy.

In addition to covering your Home, Earthquake insurance also includes the following:

  • Personal property
  • Breakables
  • Loss of use (having to stay at a hotel, for example)
  • Building code upgrades
  • Emergency repairs
  • Exterior masonry veneer, option

Not every homeowner needs to carry this type of coverage, but it’s a good idea if you live in a high-risk earthquake zone like California, for example.

What is flood insurance?

Here’s an interesting statistic: Floods are the most common natural disaster in the US. It has affected every single state in the nation. However, it’s seldom covered under Homeowners or Renters insurance policy. The cost for this policy varies, but homeowners in high-risk areas can reduce their premiums by taking precautions such as:

  • Elevating the home
  • Retrofitting
  • Joining a community program committed to reducing the risk of flooding

Given how devastating a flood can be, every homeowner needs to make sure they’re protected.

What does it cover?

Did you know that just one inch of water in your home can cost upwards of $20,000 in damage? Thankfully, flood insurance is a relatively comprehensive policy covering the following:

  • The home and the foundation
  • Plumbing and electrical systems
  • HVAC equipment, including air conditioners, furnaces, and water heaters
  • Appliances
  • Carpeting
  • Walls
  • Paneling and installed cabinets
  • Window treatments
  • Garages (even if detached, though is not always covered)
  • Debris removal
  • Basement coverage may be separate

There are also options to add your personal property like clothing, furniture, and electronic equipment, which we highly recommend. Further, you may choose to only buy insurance for the belongings in your home and elect not to insure the building itself. This type of insurance is referred to as Contents Coverage.

Most policies won’t cover the replacement cost of original artwork, jewelry and precious memories like photos and items with sentimental value. In cases like these, it pays to add coverage for your expensive items and exercise best practice when it comes to securing items.

Traditionally, the maximum amount of flood insurance is $250,000 for the building and $100,000 for its contents (your personal property).

Why do I need it?

If you live in a high-risk flood area, having coverage may be required by your lender. So, that means you’ll have to carry this policy, even if it’s not your choice. Even if it’s not mandated, it’s a smart thing to have as the damage from a flood can be financially debilitating.

Remember, most Homeowners Insurance doesn’t cover flood damage. By learning this now, you can avoid the unpleasant surprise of finding out that your flooded kitchen isn’t covered in your Homeowners policy. Most homeowners don’t discover this fact until it’s too late.

Claim examples – How coverage works

Homeowners on a budget tend to weigh the risks of flooding with the value of their home and their ability to incur out of pocket expenses. Some families may choose a strategy that only insures them against small losses. This policy would cover the vast majority of cases but leaves them vulnerable if catastrophe struck.

Other families elect to have catastrophic insurance only. This protects them from substantial financial loss, though they would ultimately bear the burden of having to pay out-of-pocket for minor flooding.

Why Click2bind for your earthquake and flood insurance?

As an independent agency, we have access to multiple carriers. We do all the research and comparison shopping for you, helping you lock in the most competitive prices while getting a plan that best fits your needs. We take a data-driven approach to find the perfect policy so that you have the coverage you need without paying for the things you don’t.

Related articles

Types of Homeowners Insurance
What Does an Umbrella Policy Cover?

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