Unprecedented flooding has occurred following one of the most devastating hurricanes the United States has ever known. In fact, in the southeastern parts of the Lone Star State, most homeowners don’t even have flood insurance. And who can blame them? There was never a precedent in the town. While hail and wind storms are a constant concern for property and business owners, no one imagined that the rainwater would contribute to enormous damage such as that suffered and spread throughout the country in recent days. Surely not the mortgage companies, because they don’t even require it of borrowers!
But now that the death toll has risen and those forced to flee their homes in search of shelter, one thing is clear. When things finally settle down, homeowners and people in the commercial sector will have to deal with epic losses and damages on their own due to a lack of related coverage.
For homeowners without flood coverage, the facts are uncomfortable and painful: A standard home insurance policy does not protect against floods or flood-related damage. The insurance industry clearly emphasizes that compensation is only granted to those who had the foresight to purchase flood insurance in the event of water damage resulting from atmospheric conditions such as a hurricane, tropical storm or other inclement weather.
A little history about flood insurance:
It was 1968 when the United States Congress drew up its flood program. Designed to help homeowners and business owners protect themselves from the financial ravages of damaging flooding, their policies are offered in all communities that participate in the rules of participation.
Flood coverage protects homeowners or tenants against damage to the building and contents.
This includes the following:
• The structure, as well as the foundations of the building.
• Electrical and plumbing systems.
• Central air conditioning, boiler, water heater.
• Refrigerator, stoves and any installed appliances, such as a dishwasher.
• Carpet that has been installed on bare floor
• Personal clothing and electronic devices
• Curtains
• Transportable heaters and air conditioners.
• Carpets other than those included in the property coverage.
• Washing machines and drying machines
Typically, flood compensation claims include:
• Replacement Cost Value: Up to eighty percent of the amount needed to replace property damage to a single-family principal residence.
and
• Actual cost value: replacement costs at the time of loss reduced by physical depreciation
Note: The flood program always uses the actual cost value to determine personal property reimbursement.
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