Some Things You Need to Know About Home (and Flood) Insurance This Summer

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As we delve into the heart of summer, many of us are starting to see the beginnings of heavy storm season coming on.  Hurricanes along our coastlines can hit at any time – rendering many properties useless in mere minutes.  The same holds true for devastating tornadoes, strong storms that end up in heavy wind and huge hail.  It only makes sense to be prepared for the worst, yet hoping it never comes to that.  Here are some questions that are often asked when it comes to insuring your property with home insurance  – especially for coverage of those rare but powerful occurrences of nature that come around every so often.

“I don’t live in a flood zone, why do I need flood insurance?”

Everyone is in a flood zone.  Floods do not have to mean water pouring in from an overflowing river or a tidal surge – in fact, a flood can occur from a simple summer storm during which there was extremely heavy downpour.  If there is rising water within your property that results in damage – most often it is flood insurance that would provide some coverage protection.

“Do I need wind and hail protection?”

Regardless of where your property stands, wind and hail  is a regular occurrence of nature and there is always a chance of it damaging your home.  Going along with regional storms, all areas of the country are susceptible to wind and hail damage so including it on your home insurance policy is highly advisable.  Very often, mortgage companies require that you obtain wind and hail coverage on your home insurance policy.

Coastal Regions:  Hurricane season is from 
June 1st to November 30th

“How much coverage do I need?”

A lot of homeowners have the misconception that they must cover the amount that they purchased the home for -- but that is not the case.  In fact, the coverage amount is based on the cost involved to rebuild the property new.  It is important to keep in mind that though you may have purchased your home at a lower price given the real estate market these days, it is not that value that matters when considering the rebuild value.

“How is the cost to rebuild determined?”

Insurance companies commission appraisers that visit the property and get a detailed account of what it would entail financially to rebuild the home.  The lot itself is not insurable, so they would only base their assessment on the building itself.  Aside from appraisers, insurance providers also use cost estimators to determine the rebuild and consequently the coverage value.

Tornado season typically peaks in the Spring but they can occur at all times of year.

The home insurance industry has many facets to it that can be complex to understand specifically.  In the context of your own property, the most prudent thing you can do is to visit your local Realtor, who not only is well versed with the home insurance ins and outs of your area but also has long-standing relationships with area insurance experts and providers.