In light of the historic hurricanes that hit Texas and Florida this summer, some hard truths were discovered about floods and insurance.

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According to the Insurance Information Institute, only 15% of the 1.6 million homes in Houston, as well as Harris Township, where Houston is located, had flood insurance. In addition, only 28% of homes located in "high risk" flood zones in Texas had flood insurance before hurricanes.

For Florida's coastal counties, according to FEMA, 42% of households have flood insurance.

Standard homeowner insurance policies do not cover floods of natural events such as heavy rains and hurricanes. However, alarmingly, an increasing number of residents are reducing their coverage or not even purchasing adequate insurance, even though major floods continue to be a regular occurrence.

Unfortunately, lack of coverage or not being insured results in considerable financial hardship for millions of Americans each year. Major hurricanes often remind us that we need to review our policies to make sure that we are well covered, but many refuse (or simply can not afford) the costs of protection or change their policies based on the value of their home and their belongings. .

Flood insurance

Many homeowners do not think they need to purchase flood insurance if they do not reside in a flood zone. However, the number of claims for compensation presented in flood-prone areas is proportional to the number of claims for compensation. Thus, simply living in a non-typical flood zone does not mean that they should not consider coverage.

For example, in 2014, the metro area of ​​Detroit was hit by 6 inches of rain in 12 hours, breaking records. Statistically, rainfall only falls once every 500 years in Detroit. In the city of Warren, just north of Detroit, nearly 40% of the buildings suffered major damage during the 2014 floods, worth more than $ 1 billion. Basement floods are generally not covered by the usual owner's policy. Those waiting for help had to wait at least a month before the governor requested federal disaster relief funds and more than two years before receiving government assistance.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Do not need precipitation of a magnitude history to flood a basement and policies – especially for those located in non-floodable areas – are not as costly as one might think. average price for a policy costs about $ 700 a year, depending on where you live, according to the ValuePenguin Consumer Studies website. Although FEMA offers affordable flood insurance coverage, there are policy limits that often lead to insufficient coverage. Significant damage can easily exceed the $ 250,000 limit in residential property property coverage, for example. Data-reactid = "31"> Rainfall of historical magnitude is not required to flood a subsoil, and policies – especially for those located in non-floodable areas – are not as costly We could think so. average price for a policy costs about $ 700 a year, depending on where you live, according to the ValuePenguin Consumer Studies website. Although FEMA offers affordable flood insurance coverage, there are policy limits that often lead to insufficient coverage. Significant damage can easily exceed the $ 250,000 limit in residential property property coverage, for example.

Jewelery and fine arts

Many homeowner's policies cover lost, stolen or damaged jewels or art objects. In this case, it is imperative to take a closer look at the details and see what is actually covered.

Policies have special limits on jewelry and / or fine arts, often set at $ 10,000. It only takes a few beautiful jewels to reach that maximum and, if your household contains jewelry or artwork collected over the past 20 or 30 years, it's simply impossible to recover the costs with insurance basic. political if something were to happen.

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Umbrella

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The umbrella insurance is designed to provide coverage Additional Underwriting Policies Regarding general negligence, such as liability for a car accident, umbrella insurance has a lot of value.Moreover, it is not as expensive as you might think so. (Use the free Kiplinger.com software tool to quickly calculate how much umbrella insurance you need.) "data-reactid =" 37 "> Umbrella insurance is designed to provide additional coverage in relation to your underlying insurance policies.In general negligence, such as liability for a car accident, Umbrella insurance has a lot of value Better still, it's not as expensive as you might think (use the free Kiplinger.com tool calculate how much umbrella insurance you need.)

For example, if someone was injured on your property, he could claim damages in the amount of $ 500,000; but your liability could only cover $ 250,000. The additional insurance covers the excess of liability at a cost generally lower than what you would pay if you increased the liability of your policies.

Those who own rental properties, a boat or simply want to prevent their hard-earned assets from being lost in a lawsuit or to cover their liability over a policy will find umbrella insurance a worthwhile investment .

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Another reason to consider an umbrella is if your teen has just got his driver's license. The umbrella insurance will provide a high level of coverage to people most likely to be at the origin of an accident.

Other insurance options to explore include guaranteed home damage replacement costs, wind insurance in hurricane prone areas and water reserve insurance.

Insurance audits are a great way to see if your policies offer the ideal level of coverage at the best rate. By exhaustively reviewing your fonts and other market options, you will be properly covered for all accidents or disasters in your life.

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