Flood Insurance - 09 Oct 2009 18:08
Many homeowners are under the impression that floods are covered under their home insurance policy, yet often an insurer requires a separate specific policy for this, or that flood insurance be added to your home insurance expressly. Your home and the surrounding area will then be assessed on its flood risk (usually with topographical maps), before the insurer will even consider insuring you. Many insurers will not cover your home for flood if you live in a high risk flood area.
Legally, there is no definition of flood, and while you may be thinking torrents and mudslides, a flood could be only an inch of water deep, but still cause enough damage to warrant cover for it.
You may think that such cover is unnecessary, but floods are responsible for as much as 30 times more damage to property than are fires. Although you may not live in a low-lying area, floods can be caused by urbanisation and poor infrastructure of your locale. Tarred roads are a great director of water and can cause unexpected flooding. Further, tarred and paved surfaces make water absorption impossible.
?The event of a flood may seem unlikely, but it’s an expensive risk to take upon yourself. Check with your insurer whether you are covered for this. If not, best you start comparing your current policy with one that protects you from all perils.
Many homeowners are under the impression that floods are covered under their home insurance policy, yet often an insurer requires a separate specific policy for this, or that flood insurance be added to your home insurance expressly. Your home and the surrounding area will then be assessed on its flood risk (usually with topographical maps), before the insurer will even consider insuring you. Many insurers will not cover your home for flood if you live in a high risk flood area. Legally, there is no definition of flood, and while you may be thinking torrents and mudslides, a flood could be only an inch of water deep, but still cause enough damage to warrant cover for it.
You may think that such cover is unnecessary, but floods are responsible for as much as 30 times more damage to property than are fires. Although you may not live in a low-lying area, floods can be caused by urbanisation and poor infrastructure of your locale. Tarred roads are a great director of water and can cause unexpected flooding. Further, tarred and paved surfaces make water absorption impossible.
?The event of a flood may seem unlikely, but it’s an expensive risk to take upon yourself. Check with your insurer whether you are covered for this. If not, best you start comparing your current policy with one that protects you from all perils.