tag:blogger.com,1999:blog-49857356224431346922024-03-07T21:05:09.860-08:00Flood InsuranceAdamhttp://www.blogger.com/profile/00254873062837841262noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4985735622443134692.post-7394603670566198982014-09-05T15:02:00.000-07:002014-09-05T15:02:00.567-07:00 Blame It On the Rain: Protect Your Home With Hurricane, Wind, and Flood Insurance<div style="text-align: justify;">
Choosing the best insurance policies for your home can cause a lot of</div>
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confusion. Many homebuyers are not fully educated about the coverage</div>
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needed to protect a home or real estate investment. Many difficult</div>
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situations can be caused by natural disasters. If you purchase real</div>
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estate in or relocate to an area prone to hurricanes or floods it is</div>
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important to know you have sufficient coverage. Read your policy</div>
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carefully, ask questions and know the facts. Consider all of the options</div>
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and get the advice of a real estate or insurance professional you can</div>
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trust.</div>
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Come Rain Or Come Shine</div>
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Hurricane insurance is also referred to as Wind and Hail insurance and</div>
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it works to cover the cost of rebuilding your home in the event of</div>
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hurricane damages. Knowing the full extent of your coverage is</div>
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essential. First choose the best deductible. Homeowners can purchase</div>
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Wind and Hail insurance with a deductible based on a percentage of</div>
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damages that may occur. This deductible will increase as the amount of</div>
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damages increases. The monthly payments are often lower, but the out-</div>
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of-pocket expense is higher. Homeowner’s can also purchase</div>
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hurricane insurance with a fixed “all peril” deductible. This means</div>
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whether you have $2000 of damage or $50,000 you pay the same</div>
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deductible. You may pay a higher monthly payment, but in high-risk</div>
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areas an “all peril” deductible can save thousands of dollars.</div>
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You should also be certain your policy contains specific coverage such</div>
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as Loss of Use. This provides funds for you to return to your home and it</div>
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can even cover a dwelling on your property while you reconstruct. The</div>
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amount you are paid depends the value of your home. Contents</div>
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Replacement Cost is another form of coverage that can be beneficial. It</div>
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allows you to have your items replaced at the current value. You can</div>
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choose to receive cash as well, but the cash value of the items is subject</div>
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to depreciation. A Living Expense Clause is another good option for</div>
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protection. It provides homeowners with an income while recovering</div>
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from hurricane damage and loss.</div>
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When The Waters Keep Rising</div>
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Flood insurance and hurricane insurance are separate policies. Flood</div>
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insurance is a product of the National Flood Insurance Program, which</div>
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is part of FEMA. Flood insurance cannot be paid by escrow it must be</div>
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paid up front by the insured. According to the official website of the</div>
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National Flood Insurance Program (NFIP), http://www.floodsmart.gov, flood</div>
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insurance covers “structural damage and mechanicals…flood debris</div>
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cleanup and floor surfaces like tile and carpeting.” You can purchase</div>
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more coverage to insure personal property, such as furniture and</div>
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appliances. In order to purchase a flood insurance policy homeowners</div>
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and real estate investors must own in a low-risk or high-risk community</div>
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that participates in the NFIP. There are three standard Flood Insurance</div>
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policy forms offered by the NFIP: the Dwelling Form, the General</div>
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Property Form and the Residential Condominium Building Association</div>
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Policy form. Each policy is based on how the building is occupied.</div>
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When Disaster Strikes</div>
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If a natural disaster occurs in your region and many residents suffer</div>
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damage by wind or flood there are many options for homeowners in</div>
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financial trouble. The US Department of Housing and Urban</div>
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Development has a special insurance program that falls under</div>
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Section203(h) of the National Housing Act to assist disaster victims.</div>
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You can learn more about this program at http://www.hud.gov. Lenders such</div>
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as Freddie Mac and Taylor, Bean & Whitaker also offer special</div>
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programs to assist disaster victims. Many lenders have encouraged</div>
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mortgage brokers to suspend late fees and delinquency penalties for</div>
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hard hit coastal areas. They have also enacted grace periods so</div>
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homeowners can refrain from making mortgage payments and avoid</div>
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being reported to the Credit Bureau. Also, many states have emergency</div>
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management departments that work with FEMA is situations like</div>
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Hurricane Katrina. These agencies, like the Virginia Department of</div>
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Emergency Management, can be of service to any homeowner in</div>
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Virginia living in a region declared a Major Disaster Area by the</div>
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President of the United States.</div>
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Adamhttp://www.blogger.com/profile/00254873062837841262noreply@blogger.com