Is Your Homeowners Policy Up to Date?

While the water is still receding from the houses in Louisiana and Texas after Hurricane Rita, now is a very good time to check your homeowners insurance to be sure you have enough coverage, including flood insurance. Unfortunately many homeowners in the affected areas had neither type of insurance; this is usually the case on just about every natural disaster that comes down the pike. Most mortgage lenders require borrowers to carry homeowners insurance and flood insurance where necessary. If your homeowner policy isn’t up to snuff, now is the time to review it and make sure you have adequate coverage including flood insurance. A large numbers of people were totally uninsured when Hurricanes Katrina and Rita struck the gulf coast. What can you expect if you lack sufficient coverage for your home? When Armageddon falls like it did in Louisiana and Texas, many homeowners are unable to rebuild their property.

To clear up some of the confusion regarding homeowner insurance here is a brief rundown. Your homeowner policy covers destruction or damage of your home from fire, wind, hail, lightning, theft, and vandalism up to the amount of the policy. Most homeowner’s policies do not cover damage from earthquakes and acts of war or terrorism; most do not cover your expensive household items either. Your homeowners policies rarely cover flood damage.

For flood damage you need flood insurance. It is, obviously, to pay for the repair of your home due to damaged by flooding. Basic flood insurance covers only the building itself and is limited to a maximum policy value of $250,000 for a residence. Your home’s contents can be insured for up to $100,000 for your residence only under a contents policy which you will have to purchase separately. Review your policy thoroughly to make sure you have enough coverage for your family. Don’t wait for a disaster to strike like it did in Louisiana and Texas. Click here to get started right away