Insurance Terms to Remember When Buying a Home:
Market Value is generally not involved in determining what amount of insurance to purchase under a homeowner’s insurance policy. The anticipated cost to rebuild the home should form the basis for the amount of coverage purchased.
Homeowner’s Insurance A package policy that combines more than one type of insurance coverage in a single policy. Homeowner’s insurance covers damage to your property, loss of personal belongings and provides personal liability protections. Additional coverages available include Backup of Sewer/Sump Pump, scheduled personal property, Identity Theft, etc.
Flood Insurance Your homeowner’s insurance policy will not cover losses from a flood. You must buy flood insurance separately. A flood insurance policy is a special policy backed by the federal government that protects homeowners against losses from a flood.
On a related note to flooding:
Midwestern states are particularly susceptible to snow melt and ice jams that cause spring flooding, but states in every region of the country are at risk. Ninety percent of all natural disasters in the US involve flooding and twenty percent of flood insurance claims come from outside high-risk areas. There are three steps that every individual can take now, to better prepare themselves and their families: 1. Get an Emergency Supply Kit 2. Prepare your family – make an emergency plan 3. Be informed.
Here’s another in-depth article on flood insurance from RIS media.
Insurance is not exciting or glamorous, but it is necessity you’ll really appreciate if bad things do happen. Though not high on your list of things to do, it would be wise to review your insurance policy every few years to see if you are properly covered. Thanks for reading the First Weber Wisconsin real estate & Wisconsin living blog for information on home insurance and flood insurance.
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