In light of the particularly devastating ongoing hurricane season, UrbanTurf decided to take a look at the type of damage that homeowners’ insurance typically doesn’t cover.
As The Wall Street Journal reports, while most standard homeowners’ insurance policies cover damages that could potentially occur during a hurricane, like flying debris breaking a window or a fallen tree smashing a roof, those policies usually don’t cover flooding.
Consequently, many homeowners who live in the path of a hurricane may be unaware that a separate flood policy is required to cover losses wrought by rising water. Additionally, some policies on homes in coastal areas may not cover wind damage or damage by a combination of flood and high winds.
Following are some examples of the type of damages that insurance policies typically cover:
- Winds alone
- Volcanic eruption
- The weight of ice, snow or sleet
Types of damage typically not covered by homeowners’ insurance policies include the following:
- Mud- or landslides
- Nuclear hazard
Homeowners’ insurance policy standards have changed in response to disaster over time. For example, after a massive flood of the Mississippi River in 1927, many private insurers dropped flood coverage. Comprehensive insurance came into vogue in the early 1950s, then policies were scaled back again in 1992 following Hurricane Andrew and its nearly $25 billion worth of damages.
Insurers started charging consumers a “hurricane deductible” post-Hurricane Katrina in 2005, which, when triggered, leaves homeowners responsible to pay 1-10 percent of the insured value of the home or its contents as a deductible before the company contributes.
Policies vary widely from state to state, including the extent to which an insurer will cover repairs. High demand for repairs after a disaster can also lead to a spike in the cost of labor and materials. Currently, the US government is the largest flood insurer, having created the National Flood Insurance Program as a stopgap in 1968 to cover up to $250,000 for home repairs and up to $100,000 for personal possessions.
Although the law requires those who use a federally-backed mortgage to buy a home in a high-risk flood zone to also purchase flood insurance, homes outside of those zones may still be susceptible to flooding. Additionally, there is a 30-day waiting period before policies take effect, leaving those who purchased them in preparation for a hurricane still vulnerable.
This article originally published at http://dc.urbanturf.com/articles/blog/no_flood_or_earthquake_coverage_the_limitations_of_homeowners_insurance/12985
Most Popular... This Week • Last 30 Days • Ever
Landmark Theatres is in the final stages of negotiations that would have it operating... read »
The housing market last month was not as hot as September 2020, but that is probably ... read »
The next phase on the Center Block would deliver 166 apartments and 221 hotel rooms.... read »
DC's crane count still ranks as one of the highest among U.S. cities despite a declin... read »
The latest installment of Above Asking revisits two recently-featured listings in the... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
The yet-to-be-built home may set a new bar for luxury in the residential real estate ... read »
Federal Realty plans to eventually file a planned unit development application for th... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro