Home insurance coverage is an often-misunderstood topic. This insurance covers a wide range of dangers that threaten your home, but there are some exclusions to this coverage.
Floods are becoming an increasingly serious problem across the U.S., especially in Texas and other southern states. Not only is the rate of hurricanes and tropical cyclones increasing, but so is their severity. Each year, flooding causes the U.S. millions of dollars in property damage. Every day families have been left without homes and no way to replace their belongings because they mistakenly believed that flood damage was covered under their home insurance policy. Before a disaster strikes, make sure to discuss your home insurance coverage with your insurer so you and your family are on the same page and able to recover after an accident.
Environmental Exclusions
Home insurance, both in dwelling coverage and personal belongings coverage, cover incidents involving:
- Fire
- Smoke
- Lightning
- Hail
- Explosions
- Theft
- Vandalism
Two major exclusions to this policy includes flood damage and earthquake damage. Any loss or damage your home or belongings suffer due to a flood or earthquake will not be covered. Fortunately, you can purchase a separate flood insurance policy.
Flood insurance can cover damage or loss to your home or belongings caused by floods. Burst pipes may be covered under this insurance under certain circumstances, but damage caused by sewage and plumbing are typically excluded from this coverage. It may also cover mold, if the mold is a direct result of the flood itself. You can also purchase a separate earthquake insurance policy.
Personal Belongings Exclusions
Certain personal belongings have limited coverage under both home insurance and flood insurance policies. Even if you have a separate flood insurance policy, you may need additional coverage for items such as:
- Electronics
- Jewelry
- Furs
- Art
Cash is not typically covered under these insurance policies. You may purchase floaters to add protection for your valuable belongings, such as a jewelry policy floater for an engagement ring.
How Much is Flood Insurance?
Premiums for flood insurance vary depending on your location and coverage limits. On average, flood insurance costs about $708 per year worldwide (about $59 a month) and $600 a year in Texas ($50 a month).
If you live in an area with a high rate of floods, your premiums could increase due to the likelihood of filing a claim.
