When you live on the East Coast, you might feel cheated by your insurance company when you hear that the standard property insurance policy does not cover damage caused by earthquakes. After reviewing your policy in depth, you will quickly discover that the standard home insurance policy also excludes coverage for most of the damage that is caused by a hurricane. Hurricanes can cause a significant amount of damage to homes and other properties, which has already been proven by the recent turmoil caused by Hurricane Irene. The high speed winds and the heavy rains that a hurricane brings can do more than just cause a mess, it can turn your perfect home into a total loss. Find out what your property insurance covers, what it excludes, and how you can fill in the gaps of coverage with specialized insurance policies.
Will Your Home Insurance Cover Flooding Damage Caused by a Hurricane?
Your home insurance company defines a flood as water that rises up from the ground or the flow of water onto more than one property. Floods can include tidal waves, melting snow, and even overflow from a pipe leak that floods an entire block. Unfortunately, floods are specifically excluded as a peril in your home insurance policy.
Wise homeowners have the option to purchase a special flood insurance policy that is sponsored by the Federal Government to fill in the gaps in protection. If you live in a flood zone, there is a chance that your mortgage company already requires you to carry flood insurance. While premiums can range in price, they are generally much higher in areas that are hurricane prone.