I generally agree except for the “flood” issue.
Regular insurance won’t cover floods, for reasons I won’t get into, but basically because floods are almost always large-scale damage, whereas, a house fire (a more typical reason) is usually isolated to a single property.
Flood insurance is generally only purchased by people in a flood plain, but when disasters like this happen a LOT of people are affected who normally wouldn’t have a reason in a million years to have flood insurance.
You can’t get very much flood insurance on a house. It is very limited. I think it costs me $250 a year.
But to make a flood claim it cannot just be YOUR home that floods...
LITTLE KNOWN FACT: To be considered a flood, the waters must cover at least two acres or affect at least two properties in the designated zone (NFIP, n.d.d).
So if your house is the only one that floods, NO CLAIM!
Flood Insurance Coverage
Flood insurance covers both residential and commercial buildings. It protects against losses to building structures and their contents that are caused by a flood, but does not protect against losses to the land surrounding them. To be considered a flood, the waters must cover at least two acres or affect at least two properties in the designated zone (NFIP, n.d.d).
For a residential property, a standard flood insurance policy covers up to $250,000 for the building structure and up to $100,000 for its contents. For a commercial property, limitations on standard flood insurance coverage are up to $500,000 for the building structure and up to $500,000 for its contents. For renter contents, the maximum coverage is $100,000. You can consult a flood insurance agent near you to choose your insurance coverage.