Your average homeowners policy does not provide flood coverage. To protect your home, be sure to recognize the risk of flooding and explore what your insurance options are.
To lay it out plainly, Oklahoma insurance companies don't give flood protection for homes because when a flood does happen, the amount of money that they are required to pay out in claims settlements is much greater than the amount they took in through premium payments. Flood insurance is a separate policy designed to help safeguard your home. Even though you purchase flood insurance policies through your insurance agent, the policy is endorsed by the federal government.
Your flood insurance policy covers the structure of your home and the inner system. Often it will also secure your personal belongings as well. Your furniture, clothes, electronics, and other valuables would be covered in your flood insurance policy under actual cash value basis. Most homeowners policies will cover damages that are caused by damaged pipes but not the actual pipe. Water damages from leaks or other discharge of water that is not on the residence are covered. Also, water damage from a heating system or plumbing would also be covered under your typical home policy, however, the defective plumbing system is not covered.
It is important to note, a flood policy has a mandatory thirty day waiting period before it goes into effect, unless it is required by your lender. Plan accordingly!
Give us a call today so we can review your homeowners and flood policies. Our knowledgeable agents are here to answer any questions you may have.