Lately, there have been lots of floods every year. That is why they come among the top natural disasters. Because floods do a lot of damage. The expenses on such damages are hard to bear. It is always advised to finance the home if you are purchasing it in a flood risk zone. If you’re a lender, then you are required to. Have the flood insurance ready.
It is better to understand and have a complete knowledge of the flood insurance details.
What is flood insurance?
Many mortgage providers make it necessary to have flood insurance ready. Because in case of any flood you will be able to recover money from any damages. Insurance helps you gain even in the most unfortunate circumstances.
Normally a typical homeowners insurance does not cover flood related damages. But the lender always works in the best interest of its clients. This is why among many other conditions one condition comprises flood related issues they do not approve of mortgage as long as this need is met.
Your property is required to get flood insurance as long as you are residing in a high flood risk area. The lenders make sure that your mortgage is backed by the government. Some of these mortgages that you take for flood related emergencies are as follows.
● Insurance by FHA.
● Freddie Mac and Fannie Mae insurance.
● Department of veteran affairs.
Under some conditions, most lenders require you to have flood insurance even if your property is not in a flood risk area. It is always better to be safe than sorry.
Working mechanism of flood insurance
There is a misconception regarding flood insurance and home insurance. Typically, when you get damages from causes like fire, theft or sometimes water then you fall under the home insurance option. Water damages involve sudden damage to the pipe etc.
However, Flood insurance damage is different. Homeowners get this if they live in a high risk flood area. The property damage from flood, heavy rain and typhoons are included in this insurance.
If you opt out to get flood insurance policies then you have to get them from insurance companies. Or you can go to government backed insurance facilities.
Claim
There are simple steps which you can take to claim your damage money.
1. Contact your corresponding insurance company and inform them of the damages. Get your damages ready for the person from the insurance company.
2. Make the pictures ready for reporting the damage and before and after demonstration in the picture is appreciated.
3. Make a list and put your damaged goods on it. If you have the receipts of those goods from purchasing, then add those too.
4. Keep the insurance number and the insurer’s contact ready and accessible after the flood.
These are the simple steps you can take to claim your insurance.