While your homeowners insurance is designed to protect against a wide array of perils, some hazards are excluded from coverage because they are too risky and expensive for insurance carriers to assume responsibility for. The most common homeowners insurance exclusions are flood and earthquake damage. To get protection for these perils, you will need to secure a separate flood or earthquake policy. Here’s what you need to know about each of these specialty coverages.
Most flood insurance policies are administered by the Federal Emergency Management Agency (FEMA). Insurance providers work with FEMA to offer homeowners access to this coverage in flood-prone areas. Flood insurance offers coverage for the physical damages and losses caused by floods and flood-related erosion. This coverage extends to floods caused by heavy rain, dam breaks, clogged storm drains, unusual tide surges, and so on.
Earthquake insurance offers coverage for the damages caused by an earthquake. This coverage extends to the structure of your home, as well as the personal belongings that may be damaged or lost in a quake. Please note that earthquake insurance only offers coverage for your home and personal belongings inside it. Things like your car will not be covered by earthquake coverage (you can protect your car from earthquakes with comprehensive insurance). Typically, earthquake insurance is only necessary for homeowners who reside near a fault time or in an area with seismic activity caused by drilling.
This is what homeowners need to know about specialty flood and earthquake insurance policies. Do you have more questions about your home coverage? If so, then contact the experts at Phocus Insurance in Phoenix, Arizona. Our dedicated team is eager to assist you today.
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