What is Covered in Case of Flood Damage?

What IS Covered in Case of Flood Damage

There are different types of flooding, from emergency plumbing damage to larger natural disasters. Run-of-the-mill, everyday flooding from plumbing problems are usually covered. Here are few types of damages and recovery that should be covered by homeowners’ insurance:

Flood Insurance

What is Flood Insurance?

Homeowners flood insurance benefits or separate flood insurance policies help you repair or replace property and personal belongings if they are damaged or lost in a natural flood. It can be purchased separately or as an additional benefit to some homeowners insurance plans. While homeowners and renters insurance plans can cover water damage done from a broken pipe or other such means, it doesn’t cover damage done from flooding caused by storms, hurricanes, or other floods triggered by natural causes.

Homeowners Insurance

What is homeowners insurance and why do I need it?

Homeowners insurance compensates you for losses to your home and your possessions inside it, so purchasing a homeowners policy provides added security for your investment. Home insurance also protects you if you’re legally liable for someone’s injuries on your property, as well as from financial losses caused by storms, fire, theft, and other events outlined in your policy. For homeowners, insurance protection is an important aspect of homeownership.

Driving Without Insurance: What are the Potential Costs?

Driving Without Insurance: What are the Potential Costs?

When it comes to auto insurance, inexperienced drivers sometimes assume it’s a good financial bet to skip the insurance policy and take the risks, thinking they can be careful enough not to cause an accident. 

About 12.6% of motorists in this country are uninsured, according to a 2014 study by the nonprofit research organization Insurance Research Council (PDF). 

6 common car insurance misconceptions

1. Red cars cost more to insure than other colors

Do red cars cost more to insure? While there’s a rumor floating around that red cars will cost you more, the car’s color is not a factor in how your insurance is calculated. The make and model of a car will affect it, but not the color. 

2. The more expensive the car, the more it costs to insure

Car insurance definitions

Actual cash value (ACV)

The value of a car considering the age, mileage, make, model, and overall condition of the vehicle.


An estimate of the value of a vehicle or property, or the extent of damage from an accident at the time of loss. Usually conducted by an impartial appraiser.

Bodily injury liability coverage

Pays damages for injury or death resulting from a covered accident for which you are at fault. May also provide you with funds for a legal defense. 


What happens if your insurance lapses?

Legal requirements

Most states require some level of auto liability insurance. This is the coverage that pays for the other person’s medical needs or property damage from an accident, if you’re at fault. So if you own a car and you’ve allowed the liability insurance on it to lapse, you might be violating the law – even if the car is parked and not driven. If you drive the vehicle and cause an accident without being covered, you’ll be cited and subjected to stiff fines or worse.

Financial consequences

Car Insurance Terms

In order to understand what your car insurance company is really telling you, you need the right terminology. All of those big words that they use on your policy and when they discuss how much you have to pay won't help you at all if you don't know what they mean. You need to understand not only the terminology but the different kinds of insurance that you can get, too. That way you'll get what you need at a price that you can afford, and you won't find that you aren't covered for something you thought that you had coverage for in the event of an accident, theft, or other problem.