Visit our website at http://www.cne-gc.webs.com
FLOOD INSURANCE
As the name
implies, a standard flood insurance policy, which is made available by the
National Floor Insurance Program, provides coverage up to the policy limit for
damage caused by flood. The dictionary defines "flood" as a rising and
overflowing of a body of water onto normally dry land. For insurance purposes,
the word "rising" in this definition is the key to distinguishing flood damage
from water damage. Also important to note is that flooding must be general and
temporary, and it must affect more than just one property.
Generally,
damage caused by water that has been on the ground at some point before damaging
your home is considered to be flood damage. Examples of flood damage may
include:
A nearby river overflows its banks and washes into you
home.
Surface water caused by a heavy rain seeps into your basement
because the soil can't absorb the water quickly enough.
A heavy rain or
flash flood causes the hill behind your house to collapse into a mud slide that
oozes into your home.
Flood damage to your home can be insured only with
a flood insurance policy -- no other insurance will cover flood damage. Flood
insurance is available through your insurance professional. To determine if your
home is located in a flood plain, contact your county planning office. If you
are living in a flood plain, flood insurance may be an excellent
purchase.
HOMEOWNERS
INSURANCE
A homeowners insurance policy does not provide
coverage for flood damage, but it does provide coverage for many types of water
damage to your home. Just the opposite from flood damage, for insurance
purposes, water damage is considered to occur when water damages your home
before the water comes in contact with the ground. A few examples of water
damage may include:
A hailstorm smashes your window, permitting hail and
rain free access to your home.
A heavy rain soaks through the roof,
allowing water to drip through your attic or ceiling.
A broken water pipe
spews water in your home.
Even if your homeowners insurance policy
doesn't cover the water or flood damage you've experienced, losses from theft,
fire or explosion resulting from that damage are covered. For example, if a
nearby creek overflows and floods your home, and looters steal some of your
possessions after you've evacuated the house, the theft would be covered by your
homeowners insurance. However, the flood damage would be covered only if you
have flood insurance.
Flood insurance and homeowners insurance do not
duplicate coverage for water damage. Instead, they complement each other. It is
up to you to talk to your insurance professional about flood insurance and
homeowners insurance and then decide which insurance coverage you need to
protect your home, its contents and your family.
Visit our website at http://www.cne-gc.webs.com
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