Homeowners policies do not cover damage caused by a flood. This damage is covered by a Flood Insurance policy. If you live in a flood hazard area, your mortgage lender may require you to purchase flood coverage. Many homeowners that do not live near a flood hazard area or have never flooded before are finding the risk of a flood hazard increasing in their community. This is primarily caused by over-development of the communities or inadequate drainage plans. Flood insurance will provide the additional peace of mind in the event of a flood.
While the law does not require you to have homeowner’s insurance, most mortgage lenders will require you to have it. Even if you do not have a mortgage, having homeowners insurance is a good idea because it helps protect your home and your assets.
Your homeowners policy will provide coverage based on replacement cost or actual cash value. Sometimes one coverage will be based on replacement cost and another will be actual cash value. Replacement cost pays to repair or replace your house and personal items at current prices. Actual cash value is the replacement cost of the covered item(s) minus any depreciation caused by time or wear and tear.
While your state has a minimum coverage level for your vehicle, the costs associated with accidents is always increasing. One factor that should be considered is if you cause a multi car accident. Would you have enough liability coverage to pay for the damages and injuries for every person involved? Any shortage would have to be paid out of pocket. We help our customers find the balance between what they can afford in their monthly budget for auto insurance and what they could afford if they were involved in an accident.
If your car was stolen, be prepared to wait. Most insurance companies will impose a waiting period to see if the police recover your car. If your car is still missing after the waiting period, usually 21 days, you should receive a settlement soon after. If your car is recovered during the waiting period, the insurance company will want to see a repair estimate before deciding how to proceed.