Flood insurance is technically optional coverage, but in areas that are prone to flooding, it’s absolutely essential. Many people assume that flooding-related damage is covered under a standard homeowner’s insurance policy, but that is not the case. Below are several mistakes to avoid when purchasing this important coverage.
Being Unaware of the Home’s Elevation
A Flood Insurance Plan Urbandale IA can be costly no matter what, but costs can be minimized if the homeowner knows the structure’s elevation. It’s possible to fill out a form to self-certify the home’s elevation, or one can hire an engineer to take precise measurements. The certification only needs to be done once, and the homeowner will pay less for as long as they own the home.
Having a Too-Large Deductible
Contacting the insurer and carrying a deductible of $1000 rather than the average of $5000 can save a homeowner 15% or more on flood insurance. Most lenders accept a lower deductible, as long as the homeowner has the financial wherewithal to pay it. Typically, a letter from the homeowner is sufficient.
Choosing an Insurance Agency Based on Preliminary Information
Instead of choosing an insurance provider based on a single phone call, the homeowner should invite the agent to the home for a detailed written quote. The paperwork will show the agent’s recommended coverage, and the homeowner can avoid getting a quote that changes once the policy is in effect. If the agent is reluctant to come out to the home, look for another insurance agency.
Having Insufficient Coverage
Many homeowners make the mistake of insufficiently insuring the structure. If a home isn’t insured for at least 80% of the current cost of construction, the flood claim may not cover all of the damage. The FEMA-sponsored flood coverage has a limit of $250,000, and if the damage exceeds that amount, it’s up to the homeowner to make repairs.
There are many ways to make a mistake when buying a Flood Insurance Plan Urbandale IA, but choosing an agent without a solid reputation is one of the most serious. Any agent can make claims about other clients, and not all are honest. When one decides to Visit Absolute Insurance Iowa, ask for references or read reviews from previous customers.