Whether you’re renting, buying a new home, or living in your dream house, insurance coverage is an important financial protection. But what’s really covered by your policy? And how do you know if you’ve got enough coverage?
Professional Restoration has helped countless homeowners restore, repair, and rebuild their properties after a disaster.
Below, our team of experts review standard insurance coverage and explore why supplemental coverages may be necessary to ensure your home is properly insured.
What’s NOT Included in Standard Homeowners Insurance
Standard homeowners insurance covers a variety of things like fire damage, vandalism, and theft; it also provides a safety net if you or a family member gets sued. However, standard policies don’t include coverages for floods, earthquakes, and sewer backup.
This is significant for a few reasons. According to the Insurance Information Institute (III), 90 percent of all natural disasters in the U.S. involve some type of flooding.
The Federal Emergency Management Agency (FEMA) reports that flooding occurs in every region of the U.S. In fact, nearly 25 percent of all flood claims occur in low-risk flood zones.
Flood insurance is available through the National Flood Insurance Program (NFIP), a government agency that regulates flood insurance pricing. Flood insurance is purchased through private insurers and backed by the NFIP.
Unlike homeowners insurance, there’s a 30-day waiting period before flood coverage activates. Among other things, flood insurance will cover damage to your:
- Home’s structure
- Furnace, water heater, heat pumps, and sump pumps
- Electrical and plumbing systems
- Permanently installed paneling, wallboard, bookcases, and cabinets
- Foundation walks, anchorage systems, and staircases
- A detached garage
- Solar energy equipment; and more
Click here to see a complete list of what’s covered by flood insurance.
Flood insurance policies can also include coverage for personal belongings such as clothing, furniture, and electronics.
This is particularly important for renters—property owners may have flood insurance, but the policy may not include coverage for contents (i.e., the renter’s property).
Read your policy carefully to ensure you’ve got the right coverage. If you’re renting a home in a flood-prone area, check your insurance policy to ensure it covers personal property.
Do I Need Flood Insurance in Colorado?
Colorado is no stranger to flooding. Just a few years ago, 17 counties were impacted by unprecedented rainfall spanning from Colorado Springs to Fort Collins.
Assessing flood risk and property value will help inform a flood insurance purchase in Colorado.
First, determine if your property is in a high-risk flood zone. This interactive map on FEMA’s website will help.
Next, consider the value of your home and its contents. In the event of a flood, valuable possessions like art, family heirlooms, or high-end furniture are not covered by standard homeowners insurance.
Estimate the cost of rebuilding your home and the value of your personal property. As a general rule, purchase enough insurance coverage to cover the cost of rebuilding your home.
In some cases, flood insurance is required. Mortgages obtained through lenders that are federally regulated or insured will require homeowners in high-risk flood zones to purchase flood insurance.
The average annual cost of flood insurance is about $700; however, premiums vary depending on your home’s flood risk.
Compare rates and be realistic about what you’ll need if your home suffers a major disaster.
When Disaster Strikes, Call the Professionals
As a policyholder, you’re entitled to work with whatever restoration company you prefer—you don’t have to work with companies recommended by your insurance provider.
In fact, there are clear advantages to speaking with a disaster relief company first, before you contact the insurance company.
Professional Restoration has been providing relief to disaster victims in and around the Denver Metro Area for more than 25 years.
We help homeowners navigate the complicated claims process and face devastating home damage head-on with expert technicians, state-of-the-art equipment, and local experience you won’t find anywhere else.
When disaster strikes, you need Professional Restoration: 303-922-4001