Choosing the Right Insurance Policy

If you are a homeowner, choosing the right insurance policy to cover your home can be difficult, and even when you think you’ve chosen wisely, all it takes is a quick read through the “exclusions” to discover that there really isn’t much coverage at all. Most homeowner insurance policies do not cover natural disasters like floods. In fact, you have to have special flood insurance in order to protect your home from costly water damage claims, since those are often specifically not covered.

If your home suffers from a burst pipe or other damage, your insurance company will likely cover your claim. If the water damage, however, is the result of a hurricane or rainstorm, you may be left to bear the cost of the restoration on your own.

If you live in a flood zone or an area prone to flooding, even if it is not designated a flood zone, you should consider purchasing additional insurance to protect you from paying out-of-pocket expenses for the cost of water restoration.

CNN’s Money Magazine offers some advice on how you can choose the right insurance. We would add one thing to their list: Talk to your neighbors and find out if they’re happy with their insurance, especially when they’ve had to file a claim. You don’t want to discover that the insurance you have isn’t what you need when you need it the most.