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Difference Between Flood Insurance And Hurricane Insurance


Introduction:


Life is so unpredictable, and so are natural calamities. In such cases, it becomes essential to have insurance coverage to protect oneself and the family financially. No one likes to get their dream home destroyed or all the essentials flown away in water due to a flood or blown away in the air because of a hurricane, which they have undoubtedly spent after earning hardcore money; so, what's the solution? How to be financially secured against any natural calamity?


Texas has been prone to natural disasters like floods and hurricanes. And, it's crucial for the people of Laredo and Lubbock, Texas, to know the difference between Texas Flood Insurance and Hurricane Insurance. So let's take a look at what those differences are:


Flood Insurance:


Irrespective of a person's standard homeowners insurance policy, it won't cover any damage caused by a flood. So, to be financially secured against the risk of flood damage, one needs to have a separate flood insurance policy.


Flood insurance policies can be purchased from the government-sponsored National Flood Insurance Program (NFIP) or private insurers. The NFIP policies are standardized, and the federal government regulates the premiums. On the other hand, private insurers can offer a broader range of coverage options and rates.


NFIP will cover the cost of up to $250,000 for the house's structure and $1,000,000 for the home contents.


However, there are a few listed things that will not be covered by flood insurance, and all those are mentioned below:


  • Living expenditure,

  • Business interruption costs,

  • Paper money or certificates,

  • Essential documents,

  • Below-ground areas and improvements, like the finished basements

A flood insurance policy pays out in two ways for each type of property covered:


Contents:

Flood insurance pays actual cash value for the contents of a home. This is the cost of replacing the contents minus depreciation. The cost is incurred to replace the contents with like kind and quality.


Property:

Here the damaged or lost property gets replaced with the new property. The coverage available is a minimum of 80% of the total replacement cost of the building.


Hurricane Insurance:

As the name suggests, hurricane insurance is a specific type of insurance coverage designed to protect homeowners against damage to their homes and property caused by hurricanes. It is important to note that hurricane insurance is a standalone policy. It is not an add-on or endorsement to a standard homeowners insurance policy.


The coverage provided by a hurricane insurance policy varies from one insurer to another, but it typically includes damage to the home's structure, its contents, and loss of use.


Insurers even impose a separate hurricane deductible, the amount of money the homeowner has to pay out-of-pocket before the insurance company starts to reimburse them for their losses. This can be as follows:

  • $500 flat-rate deductible

  • Two percent of the insured home value

  • Five percent of the insured home value

  • Ten percent of the insured home value

An insured can opt for anyone from the above-given options depending on the insurance plan.


The Final Word:

Get your home and belongings safeguarded against calamities in McAllen by getting the right insurance. Do not wait for the right time to come and rescue you; be your hero and take charge of your life and future. Make the right decision today.


Consult with the insurance provider is just before you plunge into the insurance market. You might buy a policy that won't cover your needs in a natural disaster. So, always listen to the expert advice and then decide to get the proper protection against any unforeseen event.





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